Rental Property Analysis

How is mortgage payment calculated?

DealPrism uses the standard amortizing loan formula for principal and interest.

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Answer

DealPrism uses the standard amortizing loan formula for principal and interest.

Formula: r = annual interest rate ÷ 12 n = loan term in months Monthly rate factor = [r × (1 + r)^n] ÷ [(1 + r)^n − 1] Monthly PI = Loan Amount × Monthly rate factor

If the rate is zero: Monthly PI = Loan Amount ÷ n

That principal and interest amount is then combined with PMI, if applicable, to get monthly debt service.

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DealPrism provides educational analysis based on available data and user assumptions. Results are estimates and may change if rent, taxes, insurance, financing, or other inputs are updated. This content is not financial, legal, tax, or investment advice.