Fixed Rate vs. Interest Only Mortgage

Compare a fixed-rate mortgage with an interest-only mortgage to see the difference in payments and total interest.

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Shared Inputs

$
%
30 years
10 years

Fixed-Rate

Monthly Payment$1,896
Total Interest$382,633

Interest-Only

Interest-Only Payment$1,625
Amortized Payment$2,237
Total Interest$431,813

Comparison

Extra Interest (Interest-Only)$49,179
How it works›

Model and assumptions. Amortizing payments use P × r / (1 − (1 + r)^−n), where r is the monthly rate and n the payment count. Interest-only payments use P × r. Remaining principal is still owed at the modeled balloon or comparison date; fees and future refinancing are separate assumptions.CFPB: mortgage termsOpenStax: annuity formulas