Property · Calculator companion · By K Imports
Interest-only versus repayment: practical guide
This guide explains how to use the Count.ie interest-only versus repayment. Compare interest-only payments plus a repayment savings plan with capital repayment. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Interest-only versus repayment calculatorWhat to prepare
- Collect the purchase, loan, rental or project figures from dated documents.
- Distinguish purchase price, borrowing, one-off acquisition costs and recurring ownership costs.
- Check the property's use, tax year and any scheme eligibility against official guidance.
Understand the inputs
The calculation method
Calculate monthly interest and the contribution needed to accumulate the principal at the chosen net return.
Worked example
Illustrative inputs and their result.
Example inputs
- Loan principal (€)
- 250000
- Annual mortgage rate (%)
- 4
- Loan term (years)
- 25
- Savings plan annual net return (%)
- 3
Calculated example result
- Interest Only Plus Savings Monthly
- €1,397.04
- Repayment Mortgage Monthly Payment
- €1,319.59
How to interpret the result
A loan payment, gross yield or purchase budget describes only part of ownership. Read exclusions carefully: affordability, lender approval, vacancy, repairs and transaction eligibility may not be fully modelled.
Compare like-for-like properties or financing scenarios, with the same term and cost basis. Where relevant, test a higher interest rate, a vacancy period or a larger maintenance allowance.
Common mistakes to avoid
- Do not compare gross rental yield with net cash flow as if they were the same measure.
- Do not assume a favourable tax result means the property or letting qualifies for a scheme.
- Keep refundable deposits and recurring costs separate from permanent acquisition costs.
Assumptions and sources
Principal remains due in full; investment returns are uncertain. No lender approval or product availability implied.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.