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Remaining Mortgage Balance
Debt Service
Standard Debt Metrics

Cumulative Principal Paydown

Total mortgage principal paid down over the actual ownership period.

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40-Year Projection Chart

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Cumulative Principal Paydown Formula

Sum of Annual Principal Payments for each year owned
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Where This Value Comes From

Cumulative Principal Paydown is not entered directly — it is calculated from Loan Amount, Mortgage Interest Rate, Loan Term, and Years Owned. See the formula breakdown above and the detailed inputs below.

Inputs That Determine Cumulative Principal Paydown

Platform Distribution

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Why It Matters

Principal paydown is one of the four core return streams in real estate. It represents equity your tenants build for you with every rent payment. Tracking the actual cumulative amount shows real wealth creation rather than a hypothetical 5-year estimate.

Detailed Explanation

Cumulative Principal Paydown shows how much of the mortgage principal your tenants have effectively paid off since you purchased the property. Each monthly mortgage payment splits between interest and principal — this metric tracks the cumulative principal portion.\n\nEarly in a mortgage, most of each payment goes to interest and principal paydown is small. As the loan matures, more goes to principal and the paydown accelerates. Using actual years owned shows your real equity buildup from debt reduction.

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Additional principal payment made each month beyond the required mortgage payment to accelerate loan

Remaining Mortgage Balance

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Current remaining principal balance on the mortgage based on the actual number of months since purch

$304,871 Example

Debt Service

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Total annual mortgage payments.

$24,590 Example

Debt Service Coverage Ratio

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Net Operating Income divided by annual debt service — measures ability to cover mortgage.

0.84x Example

Loan to Value Ratio

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Loan amount as a percentage of property value.

76.88% Example

Debt Yield

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NOI as a percentage of total loan amount.

6.75% Example

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