Home Loans

Interest-Only Loan Calculator (Australia)

Model an Australian home loan where you pay interest only for a fixed period (typically 1–5 years) before reverting to principal and interest. The calculator shows the cheaper IO repayment, the higher P&I repayment that kicks in afterwards, and the lifetime cost. Useful for investors maximising tax-deductible interest, owners building income to absorb the future repayment jump, or anyone weighing IO against fully amortising.

Interest Only
Compare interest-only repayments with the P&I repayments that follow.
$500,000
$
6.25%
%
5 yr
yr
30 yr
yr
Monthly IO Repayment
$2,604.17
Monthly P&I (after IO)
$3,298.35
Interest — IO Period
$156,250
Interest — P&I Period
$489,504
Total Interest
$645,754
These results are indicative estimates only. They do not constitute financial advice. Actual repayments, costs, and savings may vary. Always verify with a licensed Australian mortgage broker.