Equity From Paydown
Equity gained from mortgage principal payments during the current year.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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What This Means
A sample property priced at $385,000 with $2,850/month rent has a equity from paydown of $3,129 at Purchase (Month 0). This equity is built automatically as part of your normal mortgage payments. It is essentially a forced savings mechanism funded by your rental income.
Where This Value Comes From
Equity From Paydown is not entered directly — it is calculated from Principal Paydown. See the formula breakdown above and the detailed inputs below.
Inputs That Determine Equity From Paydown
Platform Distribution
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This equity is built automatically as part of your normal mortgage payments. It is essentially a forced savings mechanism funded by your rental income.
Detailed Explanation
Equity From Paydown equals the Annual Principal Paydown — the amount of equity gained specifically from making mortgage payments during the selected period. This equity is built automatically through your normal mortgage payments.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Extra Principal Payment
UAdditional principal payment made each month beyond the required mortgage payment to accelerate loan
Remaining Mortgage Balance
UCurrent remaining principal balance on the mortgage based on the actual number of months since purch
Cumulative Principal Paydown
UTotal mortgage principal paid down over the actual ownership period.
Debt Service
2Total annual mortgage payments.
Debt Service Coverage Ratio
2Net Operating Income divided by annual debt service — measures ability to cover mortgage.
Loan to Value Ratio
ULoan amount as a percentage of property value.
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