Your monthly payment, total interest, and full amortization — see exactly when your principal finally overtakes the interest.
The price of the property.
Investment properties typically require 20–25% down.
Annual rate. Investor loans usually price above owner-occupied rates.
Years. Most rental loans are 30-year; some investors use 15- or 20-year.
Add your escrowed property tax + insurance to see the full PITI payment. Leave 0 for principal & interest only.
Monthly Payment
$1,597
Your estimated monthly payment, including any taxes and insurance entered. Amortization assumes a fixed-rate loan.
Each year's principal-and-interest split. Early on most of your payment is interest; watch the green principal band overtake the red interest band.
For informational purposes only. Computed from the data you provide; not investment, tax, or financial advice. Consult a qualified advisor before acting on any figure.
Keystone IQ tracks each property's mortgage balance from its amortization schedule, the equity you've built, and how the debt service hits your cash flow — refreshed every page load. Connect your servicer and it stays current without a spreadsheet.
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Your monthly principal-and-interest payment is fixed for the life of a fixed-rate loan, but what's inside it changes every month. Early on, almost all of the payment is interest — the bank is charging you on a large outstanding balance. As the balance shrinks, the interest portion shrinks with it and more of each payment goes to principal, building your equity. The amortization chart above shows exactly this: the red interest band starts tall and fades, the green principal band starts thin and grows, and they cross somewhere in the middle of the loan.
This calculator computes the payment from the loan amount (purchase price minus your down payment), the interest rate, and the term. Add your escrowed property tax and insurance to see the full PITI payment — the number that actually leaves your account each month.
Loans on rental properties price differently than owner-occupied mortgages. Lenders treat them as higher risk, so the interest rate is typically higher and the required down payment is larger — usually 20–25%, sometimes more for multi-unit properties. Many investors also use DSCR loans, which qualify the property's income rather than your personal income.
Term length is a real lever. A 30-year loan keeps the monthly payment low and protects cash flow; a 15- or 20-year loan raises the payment but slashes total interest and builds equity faster. Run both terms through this calculator and compare the "total interest over the life" line — the difference is often six figures.
Most mortgage calculators stop at the monthly payment. The number that surprises investors is the total interest — on a 30-year loan at typical rates, you often pay more in interest over the life of the loan than the amount you originally borrowed. That's not a reason to avoid leverage (leverage is how real estate builds wealth), but it is a reason to weigh term length, rate, and any extra-principal strategy deliberately.
For a rental specifically, the interest is generally deductible against rental income, which softens the blow — but the cash still leaves your account first. Knowing the total, and seeing the principal-vs-interest crossover, helps you decide whether a shorter term or a refinance later is worth it.
Most lenders require 20–25% down on a single-family investment property, and sometimes more for 2–4 unit properties. That's higher than owner-occupied loans because lenders consider rentals higher risk. A larger down payment lowers your payment and total interest but ties up more cash — run a cash-on-cash analysis to see which down payment gives you the best return on the money you commit.
Lenders price investment-property loans above owner-occupied loans because borrowers are statistically more likely to default on a rental than on the home they live in. Expect a premium of roughly half a point to more than a point over comparable owner-occupied rates, depending on the lender, your credit, the down payment, and the loan type (conventional vs DSCR vs portfolio).
It's a cash-flow-versus-equity tradeoff. A 30-year loan keeps the monthly payment low, which protects your cash flow and DSCR — important when you want the property to comfortably cover itself. A 15- or 20-year loan raises the payment but dramatically cuts total interest and builds equity faster. Most buy-and-hold investors favor 30-year for the cash-flow cushion; run both terms here and compare the total-interest figure before deciding.
P&I is principal and interest — the loan payment itself, which is what amortizes over the term. PITI adds Taxes and Insurance (the escrowed amounts your lender often collects monthly and pays on your behalf). This calculator shows P&I by default; enter your monthly taxes and insurance in the optional field to see the full PITI payment, which is what actually leaves your account each month.
Generally, yes — mortgage interest on a rental property is deductible against the rental income on Schedule E (for long-term rentals) or Schedule C (for short-term rentals with substantial services), and it's typically one of the largest deductions a rental generates. The principal portion of your payment is not deductible (it's building your equity). Not tax advice. Consult a qualified tax advisor for your specific situation.
Each month, interest is charged on the current outstanding balance (balance × monthly rate). The rest of your fixed payment goes to principal, which reduces the balance for the next month. Because the balance falls a little every month, the interest portion shrinks and the principal portion grows over time. The chart above aggregates this into yearly totals so you can see the principal-vs-interest crossover at a glance.
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