Rental Property Mortgage Calculator
The PITI payment, amortisation and total interest on the investment loan for a rental property. Live calculator with worked steps and charts.
Calculator
The price you pay, before closing costs.
Investment loans typically require 20–30% down.
Advanced options (1)
This rental property calculator runs on a full rental pro-forma: rent is annualised and reduced by vacancy, every operating expense is itemised to reach NOI, and the loan amortises monthly at the rate entered. Results update live as you type.
Amortization schedule
| Year | Interest | Principal | Ending Balance |
|---|---|---|---|
| 1 | $15,677.60 | $2,285.57 | $222,714.43 |
| 2 | $15,512.37 | $2,450.80 | $220,263.63 |
| 3 | $15,335.20 | $2,627.96 | $217,635.67 |
| 4 | $15,145.23 | $2,817.94 | $214,817.73 |
| 5 | $14,941.52 | $3,021.65 | $211,796.08 |
| 6 | $14,723.08 | $3,240.08 | $208,555.99 |
| 7 | $14,488.86 | $3,474.31 | $205,081.68 |
| 8 | $14,237.70 | $3,725.47 | $201,356.21 |
| 9 | $13,968.38 | $3,994.78 | $197,361.43 |
| 10 | $13,679.60 | $4,283.57 | $193,077.86 |
| 11 | $13,369.94 | $4,593.23 | $188,484.64 |
| 12 | $13,037.90 | $4,925.27 | $183,559.37 |
| 13 | $12,681.85 | $5,281.32 | $178,278.05 |
| 14 | $12,300.06 | $5,663.11 | $172,614.94 |
| 15 | $11,890.68 | $6,072.49 | $166,542.45 |
| 16 | $11,451.69 | $6,511.47 | $160,030.98 |
| 17 | $10,980.98 | $6,982.19 | $153,048.79 |
| 18 | $10,476.24 | $7,486.93 | $145,561.86 |
| 19 | $9,935.01 | $8,028.16 | $137,533.69 |
| 20 | $9,354.65 | $8,608.52 | $128,925.18 |
| 21 | $8,732.34 | $9,230.83 | $119,694.35 |
| 22 | $8,065.04 | $9,898.13 | $109,796.22 |
| 23 | $7,349.50 | $10,613.66 | $99,182.56 |
| 24 | $6,582.24 | $11,380.93 | $87,801.63 |
| 25 | $5,759.51 | $12,203.65 | $75,597.98 |
| 26 | $4,877.31 | $13,085.86 | $62,512.12 |
| 27 | $3,931.33 | $14,031.83 | $48,480.29 |
| 28 | $2,916.97 | $15,046.20 | $33,434.09 |
| 29 | $1,829.28 | $16,133.89 | $17,300.21 |
| 30 | $662.96 | $17,300.21 | $0.00 |
Results
Monthly Principal & Interest
$1,497
Level payment for 360 months at 7.00%.
$1,864
The full housing payment a lender quotes as PITI.
$313,895
$538,895
$225,000
$75,000
75.00%
360
30 years
$1,312.50
$184.43
Live results update as you type — currently showing monthly principal & interest of $1,497. Replace the defaults with your own rent roll, tax bill and insurance quote for an exact comparison.
Visualizations
Interest Paid Each Year
Principal vs Interest
Outstanding Balance by Year
Interest Share of Payments
Formula
The investment mortgage model amortises the loan at the entered rate and term, then adds the recurring tax and insurance escrows to express the true monthly payment.
Variables
| Symbol | Name | Unit | Description |
|---|---|---|---|
| L | Loan amount | $ | Price minus down payment |
| r | Rate | %/yr | Note rate amortised monthly |
| n | Term | months | Years times twelve |
| T&I | Taxes and insurance | $/mo | Escrowed operating items |
Explanation
The mortgage is the largest line in most rental pro-formas; a quarter-point rate move shifts the payment enough to flip marginal deals, so price the debt before the property.
Step-by-Step Calculation
Follow each step to understand how the result is calculated from your inputs.
Size the loan from the price and down payment.
Convert the annual rate to a monthly rate.
Apply the amortising payment formula.
Total the payments and subtract the loan to find the finance charge.
Worked Examples
See how the calculator works with different scenarios.
Scenario
The rental property mortgage calculator run on the values above, showing the full calculation path rather than only the answer.
Inputs
Calculation
1. Size the loan from the price and down payment. → $225,000 loan 2. Convert the annual rate to a monthly rate. → 0.5833% per month 3. Apply the amortising payment formula. → $1,496.93 a month 4. Total the payments and subtract the loan to find the finance charge. → $313,895 interest
Result
Monthly Principal & Interest: $1,497
Interpretation
$225,000 at 7.00% over 30 years is $1,496.93 a month; total interest $313,895.
Understanding Your Result
Your Result: Monthly Principal & Interest: $1,497
Typical range: A 30-year loan at 7.00% pays back roughly 139.51% of the loan as interest; a 15-year loan at the same rate pays about half that.
What This Means
The mortgage is the largest line in most rental pro-formas; a quarter-point rate move shifts the payment enough to flip marginal deals, so price the debt before the property.
Why It Matters
$225,000 at 7.00% over 30 years is $1,496.93 a month; total interest $313,895.
Professional Interpretation
$225,000 at 7.00% over 30 years is $1,496.93 a month; total interest $313,895.
How this is calculated
The investment mortgage model amortises the loan at the entered rate and term, then adds the recurring tax and insurance escrows to express the true monthly payment.
What drives the result
The pro-forma method: annualise the rent, deduct vacancy to reach effective gross income, subtract operating expenses to reach net operating income, then subtract debt service to reach cash flow. Each layer answers a different question — value (cap rate), lender safety (DSCR) and investor return (cash-on-cash).
Recommendations
- •Compare the finance charge, not the payment, when terms differ — a 15-year payment is higher but the cost is far lower.
- •Adding one extra payment a year to principal can remove several years from a 30-year loan.
Educational Content
Introduction
Rental analysis starts with one year of operations: scheduled rent, vacancy and credit loss, every operating expense, and the debt payment. NOI is what remains for the owner; everything else — cap rate, cash flow, DSCR, cash-on-cash — is NOI viewed from a different angle.
Concept Explanation
The pro-forma method: annualise the rent, deduct vacancy to reach effective gross income, subtract operating expenses to reach net operating income, then subtract debt service to reach cash flow. Each layer answers a different question — value (cap rate), lender safety (DSCR) and investor return (cash-on-cash).
Applications
Benefits
- •One consistent model across every property, so comparisons are fair
- •Forces every expense to be named and budgeted rather than ignored
- •Separates the property’s performance from the financing around it
Limitations
- •A one-year pro-forma cannot capture capital expenditures that arrive in lumps — roofs, systems and exteriors need their own reserve
- •Actual vacancy and expense ratios vary by market and management quality; a single assumption hides that spread
- •The model assumes the rent roll is at market; in-place rents below market flatter the deal
Best Practices
- •Build the pro-forma from your own quotes — insurance, taxes and management — not the seller’s summary
- •Stress the deal: rent down 5%, vacancy up 5% — if it still pays, it will survive a soft year
- •Fund a capital-expenditure reserve of about 5% of rent before calling any cash flow "positive"
Common Misconceptions
Practical Tips
- •Compare a 15- and 30-year amortisation: the rate gap and the paydown speed change both cash flow and exit equity
- •Confirm whether the quote includes escrows and PMI — investment PMI is pricier than owner-occupied
Common Mistakes
Assumptions
This calculator makes the following assumptions to provide estimates:
Limitations
Be aware of these limitations when using this calculator:
Frequently Asked Questions
Answers to common questions about this calculator.
How large a down payment does an investment property need?
Who uses the rental property mortgage calculator?
How accurate is the rental property mortgage calculator?
Do I need to sign up or pay to use this calculator?
Can I use these numbers in a formal valuation or loan application?
How do I choose realistic inputs?
Related Calculators
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Related Guides
Deepen your understanding with these educational resources.
How the pro-forma layers build from rent to cash flow, and where deals usually hide problems.
Which metric answers which question, and why none of them should be read alone.
Down payments, rate premiums and how lenders size income-property loans.
Glossary
Technical terms used in mortgage calculations explained in plain language.
- PITI
- Principal, interest, property taxes and insurance — the full monthly housing payment.
- Amortisation
- The schedule by which level payments retire a loan — early payments are mostly interest, later ones mostly principal.
- Loan-to-Value (LTV)
- Loan balance as a percentage of property value. Investment loans typically cap near 75–80%.
- Private Mortgage Insurance (PMI)
- Insures the lender when the down payment is under 20%; investment properties pay a higher premium.
Authoritative References
Trusted sources and standards referenced by this calculator.
Applicable Standards
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Page Information
2026-09-21
2.0.0
Free to use for educational and professional purposes.