How do i calculate interest-only payments?
Find the Periodic RateConvert the annual percentage to a periodic rate by dividing by the number of payments per year. For example, if you make monthly payments and your annual interest rate is 9 percent, you would divide 9 by 12 to get 0.75 percent.Convert to a DecimalDivide the percentage by 100 to convert to a decimal. In this example, you would divide 0.75 percent by 100 to get 0.0075.Find the Accrued InterestMultiply the periodic rate expressed as a decimal by the outstanding balance of the loan to calculate the interest-only payment.
