This calculator allows you compare fixed rate interest-only mortgages to those having principal and interest payments.

Simply enter the Balance and Interest Rate for each loan. Check the appropriate length of the mortgage, and then press the "Calculate" button. The corresponding payment for each loan will be computed. A 10-year comparison of the annual savings or cost will also be displayed.

Notice that the interest-only payment remains the same no matter the term. This is not a mistake. Simple interest is computed by multiplying the loan amount by the annulal interest rate and then dividing by 12 to obtain the monthly payment.

As an added bonus, the resulting web page will also help you in your comparative analysis of loan options.