Interest Only Calculator?

I am hoping to switch to interest only on my mortgage, but would like to know how much of a reduction that would result in.


240,000 990 per month repayment term left 26 years (i think)

Is there a calculator online that I could use?

Thanks in advance.
Kind Regards
Caz

Monthly Interest only payment:

(Amount outstanding x Interest Rate) / 12

NorfBank said:

Monthly Interest only payment:

(Amount outstanding x Interest Rate) / 12

Click to expand...

Can it really be that simple??? Especially since most banks calculate interest daily & charge Quarterly??

If you use APR, yes

Yep, it's that simple.

Your principal isn't reducing, so whatever your interest rate is, that's what you pay.

APR is an annual rate, not a monthly rate so the formula above won't give you the exact amount but it should be pretty close (slightly more).

The exact forumla is a little tricky as there are a different number of days in each month.

The following formula should bring you a so close it doesn't matter

((1+APR_RATE)^(1/12)-1)*OUTSTANDING_AMONT

where the ^ means "to the power of"