Investment Property Mortgage Calculator
Calculate mortgage payments, cash flow, and ROI for rental properties. Analyze investment property financing with our comprehensive calculator.
Step 1: Property Details
Loan Amount Calculation
Loan Amount = Property Price × (100% – Down Payment %)
Example: $300,000 × 80% = $240,000 loan
Step 2: Financial Details
Cash Flow Calculation
Monthly Cash Flow = Rental Income – Mortgage Payment – Expenses
Positive cash flow indicates profitable investment
Investment Property Analysis
Monthly Mortgage Payment
Investment Scenarios Comparison
| Scenario | Down Payment | Monthly Payment | Cash Flow |
|---|
Mortgage Payment Formula
M = P × [r(1+r)^n] / [(1+r)^n – 1]
Where:
• M = Monthly mortgage payment
• P = Principal loan amount
• r = Monthly interest rate (annual rate ÷ 12)
• n = Total number of payments (loan term × 12)
Cash Flow Formula:
• Cash Flow = Rental Income – Mortgage Payment – Expenses
• ROI = (Annual Cash Flow ÷ Total Investment) × 100%
Example Calculation
Example: $300,000 Rental Property
Property Price: $300,000
Down Payment: 20% ($60,000)
Loan Amount: $240,000
Interest Rate: 4.5% annually
Loan Term: 30 years (360 payments)
Calculation:
Monthly Rate = 4.5% ÷ 12 = 0.375%
M = $240,000 × [0.00375(1+0.00375)^360] / [(1+0.00375)^360 – 1]
Monthly Payment = $1,216.04
With $1,800 rent and $400 expenses:
Cash Flow = $1,800 – $1,216 – $400 = $184/month
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