Free Real Estate Amortization Calculator

Most investment property loans are fully amortizing — each payment covers interest on the remaining balance plus a principal payment that grows over time. Early payments are mostly interest. Later payments shift to mostly principal. The schedule is fixed at loan origination based on rate, term, and balance.

An amortization schedule shows every payment over the loan term with the exact split between interest and principal, plus the remaining balance after each payment. It's useful for understanding equity buildup, planning refinances, and modeling payoff strategies.

A 15-year loan has higher monthly payments but builds equity dramatically faster and cuts total interest roughly in half. A 30-year loan preserves cash flow but costs significantly more in total interest. For investment properties, the decision depends on your cash flow needs and portfolio growth strategy.

Interest-only loans require payment of only the interest component for an initial period (5-10 years), with no principal reduction. Monthly payments are lower, improving cash flow, but you build no equity through paydown. They're common in commercial real estate and some residential investment loan products.

In BRRRR, you need to know your outstanding balance at the time of refinance to calculate equity available for cash-out. An amortization schedule shows exactly what you'll owe at any point in the loan — useful for modeling exactly when you'll have enough equity to refinance and pull capital back out.

Amortization refers to loan principal paydown over time. Depreciation is the tax deduction for the gradual wearing out of the physical property. They are completely separate concepts — amortization affects your equity and cash flow, depreciation affects your taxable income. Both are important in real estate investing.