Mortgage calculator
Payment breakdown, equity growth, the honest tax benefit, and — for investors — cash flow & return. Built by the team behind PlavaFin, which tracks all of this automatically once you buy.
Your full monthly payment, split into every part — principal, interest, property tax, insurance, PMI and HOA — plus how much paying extra principal saves over the life of the loan.
| Year | Loan balance | Interest | Principal | Extra | Extra’s life value |
|---|
How your ownership grows each year — the principal you pay down plus the home’s appreciation add up to the equity you gain, on top of what you already own.
| Year | Principal (paydown) | + Appreciation | = Equity added | Total equity | Loan balance |
|---|
Each year your equity grows by the principal you pay down plus the home’s appreciation — they add up to “Equity added.” “Total equity” is the running total (home value − balance). The first year starts at your first payment and the last ends at payoff, so both can be partial.
The honest mortgage-interest tax benefit. Instead of “interest × your rate,” we compare itemizing to the standard deduction — so you see what the mortgage actually saves, which for many homeowners is little or nothing.
—
| Year | Mortgage interest | Deduction over standard | Tax saved |
|---|
Estimate for tax year 2026 using federal figures — standard deduction, the $40,400 SALT cap, and your chosen marginal rate — held flat for later years for comparison. Not tax advice; state taxes and phase-outs vary.
Is it a good investment? Cap rate, monthly cash flow, cash-on-cash return, and your total first-year return on the cash you put in — counting principal paydown and appreciation, not just rent minus payment.
Even when monthly cash flow is thin or negative, principal paydown and appreciation can make the return on your invested cash strong — the picture generic calculators miss.
—
| Year | Rent / mo | Cash flow | Equity | Return on cash |
|---|
Mortgage calculator FAQ
How much does the mortgage interest deduction actually save me?
Usually far less than “interest × your tax rate.” You only benefit to the extent that itemizing beats the standard deduction ($16,100 single / $32,200 married filing jointly in 2026). Many homeowners get little or no benefit because the standard deduction already exceeds their itemized total. The Tax benefit tab above shows your real number, not the inflated one.
Is mortgage principal tax-deductible?
No. Principal is not an expense — it buys equity in the property. For a rental, the interest, property tax, insurance, and depreciation are deductible on Schedule E; the principal portion is not. This is the single biggest thing landlords miscount at tax time.
What is a good cash-on-cash return on a rental?
Cash-on-cash return is your annual pre-tax cash flow divided by the cash you invested (down payment plus closing costs). Many investors target 6–10%. A property can even have negative monthly cash flow and still deliver a strong total return once principal paydown and appreciation are counted — the Rental return tab shows both.
How much does paying extra principal save?
Extra principal shortens the loan and cuts total interest sharply. On a typical 30-year loan, even $100–$200 extra per month can shave years off the term and save tens of thousands in interest. Enter an amount in “Extra principal / mo” to see your exact savings.
When does PMI go away?
Private mortgage insurance automatically terminates once your loan balance reaches 78% of the home’s original value, and you can usually request removal at 80%. This calculator drops PMI at 78% LTV, so your later payments reflect the lower amount.
See these numbers stay true — automatically
A calculator shows the picture once. PlavaFin keeps it true every month: connect your bank and it auto-splits your actual mortgage payment into principal, interest, tax and insurance — so your net worth, cash flow, and what’s tax-deductible are always current. One app for your home, your rentals, and your business, with the entities kept cleanly apart at tax time.
Get early accessFree calculator, no sign-up. Early access is the product.