Investment Property Mortgage Calculator
See the real monthly cost of financing a rental — principal & interest, full PITI, total interest, the cash you'll need to close, and how the payment lands on your cash flow.
Payment, PITI & interest
Principal, interest, taxes, and insurance combined — what leaves your account each month.
What's in the payment (monthly)
Where the money goes
Early payments are mostly interest. In year one you'd pay about $12,281 in interest and only $1,790 toward the balance.
| After | Balance | Paid off |
|---|---|---|
| 1 year | $174,460 | $1,790 |
| 5 years | $165,907 | $10,343 |
| 10 years | $151,244 | $25,006 |
| 30 years | $0 | $176,250 |
The payment is only half the story
The mortgage is the largest expense on almost every financed rental, so small changes in rate, term, or down payment swing your returns more than anything else. A quarter-point of rate or five points of down payment can be the difference between positive and negative cash flow.
That's why this tool doesn't stop at the payment. It shows the total interest you'll pay over the life of the loan, the cash you need to close, and — most importantly — what's left as cash flow after the payment. When you're ready to see the full return, run the complete analysis.
Frequently asked questions
How are investment property mortgages different from a regular home loan?
Lenders see rentals as higher risk, so investment-property mortgages usually carry rates about 0.5%–1% higher than a primary residence and require more down — commonly 20–25%, sometimes more for multi-unit properties. The monthly math is the same amortization formula; the terms are just tougher.
What is PITI?
PITI is the four parts of a typical monthly payment: Principal, Interest, Taxes, and Insurance. Principal and interest go to the lender; taxes and insurance are often collected into an escrow account. This calculator shows the P&I separately and the full PITI so you see the true monthly cost.
Why is so much of my early payment interest?
On an amortizing loan, interest is charged on the remaining balance, which is highest at the start — so early payments are mostly interest and only a little principal. The mix flips over time. The 'where the money goes' table shows how the balance falls year by year.
How much cash do I need to close?
Cash to close is your down payment plus closing costs, loan points, and any upfront repairs. It's the real money out of your pocket at purchase — and the figure your cash-on-cash return is measured against, so it's often more decisive than the rate.
Should I take a shorter loan term to save interest?
A 15-year loan saves a lot of total interest but raises the monthly payment, which usually hurts cash flow — the opposite of what most rental investors want. Many buy-and-hold investors choose a 30-year term precisely to keep the payment low and cash flow positive. Try both terms here and compare the effect on cash flow.