As a property investor it is good to have a strong idea on how much your monthly repayments will be.

Why? Because it will play an important factor in determining how much your positive monthly cashflow will be.

Now when you look online, you will find an assortment of mortgage repayments calculators that will each require a certain level of information from you.

But do not worry...

The main figures you will need to know to complete these and work out your monthly repayments will be your mortgage amount, the term of your mortgage and your interest rate.

Once you put these figures in you can receive two answers: how much your repayments will be if you are planning to pay 'interest only' or alternatively what your mortgage will be if you are doing a traditional repayment.

To work out your rental properties possible monthly repayments, simply fill in the following details:

Enter your details and click calculate

Mortgage amount:

£

Term of mortgage (years):

  

Mortgage interest rate:

   %

Results

	Interest only	Repayment
Monthly repayment amount*	£	£

*This calculation is indicative only.

Alternatively contact our Property Mentor Finance team today, and let us help you to discover the true investment potential of your property investments: mortgage repayments, positive cash flow and tenancy demand included.

How to work out your properties monthly repayments

Now if you are interested in getting involved in the technical side of this equation, the following formula could help you to work it out by hand.

Take for example the following scenario.

You take out a £10,000 loan for over 5 years at an interest rate of 9% per year (or to make it easier 0.75% for 60 months). For this loan you will be facing a repayment of:

• 10,000 x 0.0075 ÷ (1- (1 + 0.0075) -60) = £207.58 per month

With normal Building Society mortgages you may come across monthly repayments where your interest rate is compounding yearly. You can easily work this out too using the following formula.

For this example, let’s say you borrow from a Building Society £50,000 for a 25 year period that charges you 6% in interest per year (compounding annually):

• 50,000 × (0.06 ÷ (1 + 0.06) -25) = £3,911.34 per year
  
  3,911.34 ÷ 12 = £325.94 per month

Making a choice

Now as an investor you will probably find yourself using the first equation as it is the most beneficial to you in terms of controlling your monthly repayments, but it is good to bear in mind the second as this could one day prove useful.

There is of course a simpler way to work out your monthly repayments, rather than doing all this by hand: using a Mortgage repayment calculator.

Before you use it just make sure that you have got the following figures available to you about your rental property: mortgage amount, length of mortgage and your interest rate.

Easy?

It can be once you have got the right training and investment strategies to ensure that you make real, credible profits from these above figures.

At Property Mentor we can help.

By simply attending one of our FREE 2 hour taster sessions you too can ensure that each of your property investments translates into long term, month on month profits.

Call us today on 0845 020 4232, and take a step in the right direction.

Resources

• Our Free 2 hour trial course