Calculate your monthly mortgage payment and total cost of a loan. Uses the standard amortization formula to break down principal, interest, taxes, and insurance so you know exactly what you're paying.
Monthly Payment
$1,863
First Payment Breakdown
What does this mean?
Your annual payments are 5–7% of the home price. This is a comfortable range for most investors and homeowners, leaving room for other expenses.
Keep running the numbers
Know your payment. Now see if the deal actually cash flows.
Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.
Compare the total cost of ownership versus renting over time.
Calculate the Debt Service Coverage Ratio to see if a property's rental income covers its loan payments.
A mortgage payment is calculated using an amortization formula that spreads the loan balance across equal monthly payments over the loan term. Each payment is split between principal (paying down the loan) and interest (the cost of borrowing).
In the early years, most of your payment goes toward interest. As the loan matures, more goes toward principal. This is why the first payment breakdown above shows a heavy interest split — it shifts over time.
For investors: Your mortgage payment is a key input for cash flow analysis. Subtract your total monthly payment (PITI) from rental income to estimate monthly cash flow. A lower rate or larger down payment reduces your payment and improves cash-on-cash returns.
Common terms: 30-year fixed is the most popular for investment properties due to lower monthly payments. 15-year loans build equity faster but require higher payments. Adjustable-rate mortgages (ARMs) may start lower but carry rate risk.