Interest only vs principal and interest
Compare the cost of an interest-only period. No upper limits.
Example figures are filled in. Replace them with your own.
Extra interest from going interest-only
$51,232
- Interest-only repayment (monthly)
- $3,203
- Principal and interest from day one
- $3,970
- Repayment after interest-only ends
- $4,294
- Total interest, interest-only first
- $780,480
- Total interest, principal and interest
- $729,248
Interest-only lowers repayments for a while, but the balance doesn't fall, so repayments jump afterwards and total interest rises.
Everyone's situation is different. These figures are a starting point. An adviser can run a personalised calculation with your real numbers and current lender policies.
Results are estimates for planning, using standard loan maths, and should be used as a guide only. They assume rates stay the same and leave out fees you haven't entered. They are not an offer or approval of finance, and not financial advice.
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Everyone's situation is unique. An adviser can run a personalised calculation with your real figures.