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Front End Ratio
Loan Amount
Intermediate Debt Metrics Loan & Mortgage Risk Assessment

Back End Ratio

Monthly mortgage plus operating expenses as a percentage of rent.

Example Result

Sample Data
106.76%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Back End Ratio Formula

(Monthly Mortgage + Monthly Operating Expenses) / Monthly Rent x 100
($2,049.13 + $994) / $2,850 x 100
106.76%

What This Means

A sample property priced at $385,000 with $2,850/month rent has a back end ratio of 106.76% at Purchase (Month 0). If the back end ratio exceeds 100%, the property is cash flow negative. The gap between the back end ratio and 100% is your profit margin. This is a quick way to assess overall deal viability.

Where This Value Comes From

Back End Ratio is not entered directly — it is calculated from Monthly Rent and Total Operating Expenses. See the formula breakdown above and the detailed inputs below.

Inputs That Determine Back End Ratio

Platform Distribution

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Why It Matters

If the back end ratio exceeds 100%, the property is cash flow negative. The gap between the back end ratio and 100% is your profit margin. This is a quick way to assess overall deal viability.

Detailed Explanation

The Back End Ratio adds operating expenses to the mortgage and compares the total to monthly rent. This shows the total expense burden relative to income.

Example

Sample Result
83.68%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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