---
title: "Interest-only (IO) period — Class A Atlas glossary"
description: "Loan period with no principal amortisation."
canonical: https://classa.info/glossary/interest-only-period
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Loan period with no principal amortisation.

## TL;DR

- Loan period with no principal amortisation.
- Standard 2–5 year IO at the front of a 10-year Class A loan.

# Interest-only (IO) period

*Finance · US*

## Short definition

Loan period with no principal amortisation.

## Full definition

Standard 2–5 year IO at the front of a 10-year [Class A](/glossary/class-a) loan. Improves DSCR coverage and equity yield. Refis often face IO-to-amortising transitions.

## Why this matters for Class A leasing

Interest-only (IO) period is part of the finance vocabulary that institutional Class A occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so [cross-border](/topics/cross-border-expansion) occupiers can translate quickly.

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Citation: Source: Class A Atlas (https://classa.info/glossary/interest-only-period), updated 2026-04-01T00:00:00.000Z.