Back End Ratio

Monthly PMI

Two-Input Ratio Debt Metrics

Loan Amount

The total amount borrowed to finance the property purchase.

Example Result

Sample Data

$308,000

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

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Loan Amount Formula

Purchase Price − Down Payment

$385,000 − $77,000

$308,000

What This Means

A sample property priced at $385,000 with $2,850/month rent has a loan amount of $308,000. The loan amount determines your monthly mortgage payment, total interest paid over the life of the loan, and your initial loan-to-value (LTV) ratio. A higher loan amount means more leverage — which amplifies returns when things go well but increases risk if property values decline or cash flow is negative.

Where to Find This Value

Here's where you can find the value for Loan Amount:

Loan Estimate

Your Loan Estimate shows the total loan amount (purchase price minus down payment)

Purchase Price - Down Payment

Calculated as purchase price minus your down payment amount

Calculated From

Loan Amount is calculated using these inputs:

Purchase Price

The agreed-upon price to acquire the property.

Found on your purchase contract / hud-1

$385,000

Down Payment

The cash portion you pay upfront toward the purchase price.

Found on your loan estimate

$77,000

Used to Calculate

Loan Amount is used as an input for these calculations:

Monthly Mortgage Payment

Monthly Interest Payment

Debt Metrics

$1,796.67

Year 1 Principal Paydown

Debt Metrics

$3,129

Year 1-5 Cumulative Principal Paydown

Debt Metrics

$18,075

Remaining Balance Year 5

Debt Metrics

$289,925

Remaining Balance Year 10

Equity Position Current

Equity From Loan Paydown (Year 1-5)

Equity & Wealth

$3,129

Platform Distribution

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Why It Matters

The loan amount determines your monthly mortgage payment, total interest paid over the life of the loan, and your initial loan-to-value (LTV) ratio. A higher loan amount means more leverage — which amplifies returns when things go well but increases risk if property values decline or cash flow is negative.

Detailed Explanation

The Loan Amount (also called the principal balance) is the portion of the purchase price financed through a mortgage. It equals the purchase price minus your down payment. This is the amount on which interest accrues and the basis for your monthly mortgage payment calculation.