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Interest-only vs principal and interest

See what an interest-only period does to your repayments now and later, and how much extra interest it adds over the whole loan.

Worked out only in your browser; nothing is sent or saved. We do not publish rates or fees: use the ones from your own quote.

For example 500,000

From your quote

What these numbers mean
  • The big number is the extra interest you pay by starting with interest-only years.
  • Repayment during interest-only years covers only the interest, so the balance does not go down.
  • Repayment after is the higher principal and interest repayment over the years that are left.

Good to know

  • The same rate is used for the whole term. In practice, interest-only and principal and interest rates can differ, and rates can change.
  • During the interest-only years the balance does not go down, so the later repayments clear it over fewer years.
  • Fees are not included.
  • This is a guide only, not a quote, an offer of finance, a borrowing limit or financial, legal or tax advice.

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