Mortgage and Loan Repayment Calculator

The mortgage is the most significant expense in any investment property. While many investors will use an interest-only mortgage – where the principal doesn't go down – others will prepare to use a standard principal and interest mortgage.

You can calculate what your payment would be for a principal and interest mortgage using the above mortgage calculator.

Four factors determine the size of your repayments:

• The amount of the lending you take out, e.g. $500,000
• The interest rate that the bank charges you, e.g. 4%
• The length of your loan, e.g. 30 years
• The frequency you make a payment, e.g. weekly

As a property investor, a key concern will be limiting your repayments to the bank. This is because if your mortgage payments are too high, you may have to sell your properties early, or limit the size of your portfolio. This limits the potential capital gains that you can make – which can often be significant. Use our capital growth calculator to see what your capital gains might be.

That's why using this mortgage calculator, you will notice that there are four ways to reduce your loan repayments:

• Decreasing the initial size of the mortgage, e.g. $400,000, rather than $500,000. However, this may not be the best option as you may need to purchase a cheaper investment, which may not be a good quality investment.
• Negotiating a lower interest rate with your bank, e.g. 3.5%, rather than 4%. This is arguably your best option if you are set on taking out a principal and interest mortgage, rather than one that is interest-only
• Lengthening the term of the loan, e.g. 30 years, rather than 25
• Moving to an interest-only loan, which means that you pay back none of the principal of the loan, and it will always be there.

Another strategy is to decrease the size of your mortgage by using a larger cash deposit. However, this isn't always achievable for first time investors, who use tools like our equity calculator to purchase properties without any cash.

This mortgage calculator can tell you what your mortgage repayments will be. However, mortgage repayments are only one expense. To see the financial picture of your investment, use our property investment calculator.

You may also want to see whether the property will earn you money each week, or require an additional investment to keep going. Use our rental yield calculator to run these numbers.

If you want to run the numbers using another method, Opes has a full range of other calculators that you can find and use.