Principal and Interest Calculators help CRE investors understand their monthly mortgage payments, plan their budgets, and assess the financial implications of their investment.  Principal and Interest (P&I) payments are typically the biggest expense for investors with commercial mortgages.

The principal and interest on a mortgage are typically determined by the loan amount, interest rate, and loan term.  As investors make mortgage payments, the proportion allocated to principal versus interest evolves over time.

This calculation is vital for financial planning, helping multifamily investors project cash flows, analyze the impact of different loan terms, and make informed decisions about refinancing or selling properties. It provides clarity on the gradual reduction of the loan balance over time, contributing to an understanding of the property’s equity buildup.