 Interest-only expiry calculatorhttps://ratepool.com.au/calculators/interest-only-expiry Explore another scenario |
Interest-only expiry calculatorhttps://ratepool.com.au/calculators/interest-only-expiry Explore another scenario |
Estimate the repayment jump when principal-and-interest repayments begin.
Use the remaining loan term, including the interest-only period. The starting figures are an example.
$915.37estimated increase per month
Interest only$2,500.00
Principal & interest$3,415.37
The interest rate stays at 6.00% so the result isolates the change from interest only to principal and interest.
Starting principal repayments later leaves fewer months to repay the unchanged balance.
During the interest-only period, the monthly payment is the entered balance multiplied by the annual interest rate and divided by 12. The balance does not reduce. From the selected expiry month, we calculate equal monthly principal-and-interest repayments over the term still remaining.
The interest rate remains unchanged throughout this illustration. It excludes fees, offset balances, extra repayments and any lender-specific repayment timing or rounding. If the rate will also change, test that separately. Confirm the expiry date, revert rate and repayment with your lender.
Interest-only repayments do not reduce the principal. When the period ends, the same balance must be repaid over the shorter term left on the loan, so the required repayment can rise even if the interest rate does not.
Your lender may apply a different rate when interest-only repayments end. Ask for the expiry date, principal-and-interest rate and estimated repayment before the change takes effect.
Test a different interest rate