[Calc Review] I ran a test, and now I am confused.

[Johnny Duke]

I ran some very simple numbers as a test to get acquainted with the fix-and-flip calculator. I seem to be messing up on the loan section. I have it at 100% LTV ($200,000) at 12% and amortized for 1 year. The result is a $17,769.76 per month. I must not be understanding the amortization aspect? I assumed that is the life of the loan, meaning it should be $24,000 for the year, $2,000 per month, and a total of $8,000 for the calculated 4 months of holding. What am I missing or not understanding?

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*This link comes directly from our calculators, based on information input by the member who posted.

Happy Halloween everyone!

Johnny Duke

[James Galla]

Your math is incorrect. Amortization does not do a straight-shot (rate x loan balance) to determine interest. Check out this video on amortization.

Good luck!