Mortgage Calculator for Investment Properties in Canada and the US

Your mortgage is the single largest monthly expense on most rental properties. A small change in rate, amortization, or down payment dramatically affects your cash flow. Run the scenarios before you commit.

The Formula

Monthly Payment = P[r(1+r)^n]/[(1+r)^n-1] where P=principal, r=monthly rate, n=total payments

Real-World Example

Property: $450,000 CAD. Down payment 20% ($90,000). At 5.5% over 25 years: $2,191/month. At 6.0%: $2,298/month. That 0.5% difference = $107/month = $1,284/year. Over 5 years = $6,420. At 4.5% (if rates drop): $1,997/month - saving $194/month vs 5.5%.

The Bottom Line

Run at least 3 rate scenarios before buying: current rate, +1%, and +2%. If the property only works at today's rate, it's too risky for a variable rate mortgage.