Principal & Interest Payment Calculator
Compute an amortizing monthly payment at a rate you enter.
Your scenario
This is not a quote; test any rate.
Results
Fill in the fields to see your result; it updates as you type.
This calculator is for educational purposes only and does not constitute a loan approval, pre-qualification, commitment to lend, or quote of rates or terms. Actual qualification is determined by full underwriting, including an appraisal with a market rent analysis (Form 1007) or executed lease where applicable. Program guidelines vary by scenario. Loancutters Inc. dba Evoque Lending, NMLS #337415, CA DRE #01521538. Equal Housing Opportunity.
How to read the result
An amortizing payment stays the same every month, but its composition shifts: early payments are mostly interest, later ones mostly principal. The two totals underneath the payment tell the long story; what you'd pay across the entire term, and how much of that is interest rather than balance reduction.
Comparing terms is where this tool earns its keep. A longer term lowers the monthly payment; which can help a rental's coverage ratio; but increases total interest over the life of the loan. Neither choice is universally right; it depends on whether monthly cash flow or lifetime cost matters more to your strategy.
What lenders actually use
The figure here is principal and interest only. For qualifying purposes, lenders work with the full monthly obligation, P&I plus property taxes, insurance, and any association dues, collectively PITIA. On investment properties, that full payment is what gets measured against rent in a coverage ratio, so the P&I figure is the starting point rather than the finish line.
Available terms and structures differ by program, and the rate you tested here is your own input, not an offer. Guidelines vary; contact us to see which structures fit your scenario.
Common questions
Why is so much of the early payment interest?
Interest accrues on the outstanding balance, which is largest at the start. As the balance falls, each identical payment contains a little more principal than the one before; that's amortization working as designed.
Should I pick the longest term for the smallest payment?
A longer term improves monthly cash flow and coverage math but costs more interest over the full term. Many investors take the payment relief and plan to sell or refinance before the long tail matters; a strategy question, not a math one.
Does this include taxes and insurance?
No; this tool isolates principal and interest. Use the DSCR or break-even calculators on this site when you want the full PITIA picture measured against rent.
Will my actual payment match this number?
Only if your final loan amount, rate, and term match what you typed. The rate field is a test input, not a quote; actual terms are determined through underwriting.