Initial Equity Question

[Ryan O.]

Hi I was running some numbers on the BiggerPockets Rental Calculator and I kept realizing that the equity for a property after year one was much higher than I would expect and have been having trouble understanding why this may be. I can figure out the Initial Equity alright...ARV - PurchsePrice + Down Payment. But the after 1 year value isn't making any sense to me.

Just logically thinking, the equity after year 1 should be the Initial Equity + Principal Repayment which I am using the Excel Formula PPMT to figure out.

If anyone could provide some help with this I would greatly appreciate it! Thank you