Any savvy multifamily investor knows the value of due diligence when it comes to debt. Understanding the breakdown of a loan’s monthly payments empowers a borrower to budget and make educated decisions about a property’s future. Often, calculating loan repayments helps borrowers discover they can afford more than they originally thought, but in many cases, it serves as a way to prevent borrowers from going beyond budgetary limitations.

Both scenarios considered, understanding the recurring costs of a loan product assists an investor in making better, more informed decisions.

Loan Repayment Calculator

The loan repayment calculator can help commercial real estate investors determine the cost of payments and interest over the course of a loan’s term.

Just enter the loan balance, interest rate, and the months remaining in the loan’s term. The calculator will produce a breakdown of the total interest to be paid, the total repayment amount (including interest), and the value of a monthly payment.

Curious to learn more? Keep reading below.

Why Use the Loan Repayment Calculator?

The loan repayment tool is a simple calculator designed to give borrowers an idea of what to expect given specific loan parameters. While the outputs should only be considered an educated projection than any kind of absolute determination due to the unique properties of each individual loan transaction, the calculator is able to project:

• Monthly loan payment amount

• How different interest rates affect the loan balance

• The cost of interest to be paid over the life of the loan

• The cost breakdown of the loan (principal versus interest)

HUD Loans does not guarantee the accuracy of this information and is not responsible for the consequences of any decisions or actions taken as a result of any information provided by this tool. This loan calculator assumes that the interest rate remains fixed throughout the life of the loan, and it should not be utilized for variable- or floating-rate financing.