Fixed Rate vs. Interest Only Mortgage Calculator

Fixed Rate vs. Interest Only Mortgage Calculator

Fixed Rate vs. Interest Only Mortgage Calculator

A fixed rate mortgage has the same payment for the entire term of the loan. Use this calculator to compare a fixed rate mortgage to Interest Only Mortgage.

Fixed Rate Mortgage vs. Interest Only Mortgage
View Calculator


Fixed Rate Mortgage

A fixed rate mortgage has the same interest rate and monthly payment throughout the term of the mortgage. The payment is calculated to payoff the mortgage balance at the end of the term. The most common terms are 15 years and 30 years.

Interest Only Mortgage

An Interest Only mortgage only requires monthly interest payments. Since you are not paying any principal, this can lower your monthly payment. However, since your mortgage's principal balance is not decreased, you will have a balloon payment at the end of the mortgage's term. Some Interest Only mortgages will also be adjustable rate mortgages (ARM). An Interest Only ARM will often have a period where the interest rate is fixed, and then it is adjusted annually. This calculator assumes that the interest rate for your Interest Only Mortgage remains fixed for the entire term.

Mortgage amount

Expected balance for your mortgage.

Term in years

The number of years over which you will repay this mortgage. The most common mortgage terms are 15 years and 30 years. Please note that for the Interest Only Mortgage you will have a balloon payment for the entire principal balance at the end of the loan term.

Interest rate

Annual interest rate for each mortgage type.


A monthly prepayment of principal you would like to apply to your Interest Only Mortgage balance.

Monthly payment

Monthly principal and interest payment (PI) for the Fixed Rate Mortgage. This is an interest only payment for an Interest Only ARM.

Related Content

Interest-Only Mortgages
Interest-Only Mortgages

Interest-only mortgages are not really a type of mortgage. The ability to make only interest payments on a mortgage is an option available on adjustable rate mortgages (ARMs) or fixed rate mortgages (FRMs).

Fixed Rate Mortgages
Fixed Rate Mortgages

A fixed rate mortgage, or FRM, is probably the most simple and easy to understand type of mortgage. It is also by far the most popular mortgage type.

30-Year Fixed Mortgages
30-Year Fixed Mortgages

30-year-fixed: the most popular type of loan. Find out why is the best choice for your financial situation.

Get a Fast, Free, No Obligation Mortgage Rate Quote

Purchase Price
Loan Amount
Get Rates  

256-bit secure data connection. We value your security. Read our privacy policy.



Over $1.5 Billion Funded

BBB Rating A Secured



Mortgage Rates by State

Please select your state to view our lowest available Current Mortgage Rates.


Ask a Question

Leave this field empty


Are you a Real Estate professional or Lender? Get yourself listed on for FREE.

Join Now

We Care

We Support Charities A portion of all proceeds earned by will be donated to charitable organizations.

View List of Charities Supported

Private and SecureBBBBBB A+ RatingEqual Housing OpportunityCMPSFHA