Rental Property Mortgage Calculator
A mortgage payment calculator turns a loan amount, interest rate, and term into the monthly principal-and-interest payment — the number that drives a rental property’s debt service, cash flow, and DSCR. For investors, the lifetime interest figure matters just as much: it is the true cost of the leverage.
$2,661/month
Annual debt service: $31,935 · Total interest over the term: $558,036
The formula
M = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
The standard PMT formula: P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). The result is the fixed monthly principal-and-interest payment; taxes and insurance are separate.
Worked example
- An investor borrows $400,000 at 7.0% over 30 years.
- Monthly rate r = 0.07 ÷ 12; payments n = 360.
- Monthly payment = about $2,661 — $31,934 of annual debt service.
- Over the full term that is roughly $558,000 of total interest on a $400,000 loan.
Annual debt service is the denominator of DSCR — pair this with the DSCR calculator to see whether a property’s NOI covers the loan.
Investment-property mortgage rates typically price somewhat above owner-occupied rates for the same borrower, and a 30-year amortization at rates around 7% means total interest over the life of the loan can exceed the original principal.
Frequently asked questions
- Does this payment include taxes and insurance?
- No — it is principal and interest only. Property taxes and insurance are operating expenses; lenders may escrow them on top of this payment, and they belong in NOI when you underwrite the deal.
- How does the loan term change the payment?
- Longer terms lower the monthly payment but raise lifetime interest. Moving a $400,000 loan at 7% from 30 to 15 years raises the payment by roughly a third while cutting total interest by more than half.
- Why do investors care about total interest, not just the payment?
- The payment determines cash flow and DSCR today; total interest is the price of the leverage over the hold. Comparing total interest across term and rate scenarios shows what a refinance or faster amortization is actually worth.
Run the whole deal, not just one number
The free rental property analyzer calculates DSCR, cap rate, cash-on-cash, and cash flow together from one set of inputs — no signup required.
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