loan payments - Interest only?

[Steach91]

I know the pmt function allows for a regularly mortgage payment to be
calculated, but is there a function, or does anyone know a working
formula to calculate an interest only payment?

 

[Mallycat]

Isn't is just a straight interest calculation? multiply the rate by the
principal and that should be the payment.

 

[joeu2004]

I know the pmt function allows for a regularly mortgage payment to be
calculated, but is there a function, or does anyone know a working
formula to calculate an interest only payment?

(You might need to specify whether you are talking about Canadian
mortgage or otherwise. I will assume a US mortgage.)

It is simply the interest accrued during the month (or payment period).
Ostensibly, for a $150,000 loan at 7% interest rate for example, that
is simply 150000*7%/12 = $875. And that is indeed what one online
interest-only calculator computes.

However, for most US loans, I believe interest compounds daily. In
order to keep the interest-only payments equal (I presume), I would
expect the monthly payment to be $877.47 or a rounded equivalent; that
is:

=fv(7%/365, 365/12, 0, -150000) - 150000

 

[Jim May]

Whatever the First months Interest Payment is $$$- It is the Same Every
month unless or until you begin paying against the Principal.