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Breakeven Ratio
Back End Ratio
Two-Input Ratio Debt Metrics Loan & Mortgage Risk Assessment

Front End Ratio

Monthly mortgage payment as a percentage of monthly rent.

Example Result

Sample Data
71.90%

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

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Front End Ratio Formula

Monthly Mortgage / Monthly Rent x 100
$2,049.13 / $2,850 x 100
71.90%

What This Means

A sample property priced at $385,000 with $2,850/month rent has a front end ratio of 71.90% at Purchase (Month 0). A front end ratio below 60-65% typically indicates a property that can cash flow after accounting for expenses. If 80% of rent goes to the mortgage alone, there is very little room for operating expenses and profit.

Where This Value Comes From

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

Inputs That Determine Front End Ratio

Platform Distribution

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Why It Matters

A front end ratio below 60-65% typically indicates a property that can cash flow after accounting for expenses. If 80% of rent goes to the mortgage alone, there is very little room for operating expenses and profit.

Detailed Explanation

The Front End Ratio compares the mortgage payment directly to the monthly rent. It shows what portion of rent goes to the mortgage, with the remainder covering expenses and generating cash flow.

Example

Sample Result
55.65%

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

Related Calculations

Extra Principal Payment

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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

Cumulative Principal Paydown

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Total mortgage principal paid down over the actual ownership period.

Debt Service

2

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

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