Interest-only payment calculator.
Most private mortgages are interest-only, so the monthly payment is simply the balance multiplied by the annual rate, divided by twelve. Use this to show a borrower what the carry looks like — and what the same money costs over a full term.
Interest-only payment
How it is calculated
Monthly interest-only payment = balance × annual rate ÷ 12. Nothing is applied to principal, so the balance at maturity is the balance at funding.
Total cost of borrowing adds the lender fee and any closing costs you enter to the interest paid over the term. That total is the number a borrower should be comparing, not the rate.
What this does not include
- Property taxes, insurance and condominium fees
- Payments on any other mortgage on the property
- Holdbacks, where the commitment requires one
- The cost of the exit — the refinance or sale that ends the term
An estimate only. The commitment governs.
Amortized instead?
Some Lendmax terms can be structured with amortized payments rather than interest-only. Ask the desk which structure suits the file — a lower balance at maturity can make the exit easier to arrange.
Ask the desk