RC Lending

Interest Only vs P&I

Compare interest-only periods against principal & interest.

All calculators

Loan details

years
years
%
%

Monthly repayments

Interest only

$3,617

First 5 years

Principal & interest

$4,107

Over 30 years

Cash flow difference per month$491
Revert repayment after IO (25 years)$4,425
Repayment increase at revert$808

Cost of interest only

Total interest — IO then P&I$844,476
Total interest — P&I from day one$778,618
Additional interest cost$65,858
Principal repaid under P&I in 5 years$50,250
Loan balance at end of IO period$700,000

Interest only keeps the balance unchanged during the IO period, so repayments rise once the loan reverts to principal and interest over a shorter remaining term.

These calculators provide indicative estimates only and are intended as discussion tools. Results do not constitute loan approval, credit advice, financial advice, tax advice or legal advice. Actual lending outcomes depend on lender policy, servicing, valuation, product terms and individual circumstances.

Results are estimates only and are based on the information and assumptions entered. Interest rates may change, and fees, charges and individual lender calculations may not be included. These results do not constitute credit, financial, legal or taxation advice. Actual repayments and outcomes may differ.