Leverage Calculator

Understand how debt amplifies your real estate returns - and risk. See the power of leverage.
Learn: What is Leverage?
What is it?
Leverage means using borrowed money (debt) to amplify your investment returns. In real estate, this typically means using a mortgage to buy more property than you could with cash alone.
Leverage Ratio = Total Assets ÷ Your Equity
20% down = 5:1 leverage (control $500K with $100K)
Why Should You Care?
Leverage magnifies both gains AND losses. A 10% property appreciation becomes a 50% return on your cash with 5:1 leverage - but a 10% decline wipes out half your equity.
  • Amplifies appreciation on equity
  • Increases risk in downturns
  • Buy more properties with same cash
Common LTV Ranges
0-60%Conservative
60-75%Moderate
75-80%Standard
80%+Aggressive
Property & Financing
Property Value
Down Payment20% = $0
20%50%100%
Expected Annual Appreciation3%
0%3%5%10%
Monthly Cash Flow (Optional)
Net cash after all expenses and mortgage
Leverage Metrics
Enter property value to see leverage metrics
Return Comparison
Enter property details to see return comparison

Track leverage across your entire portfolio

  • Monitor LTV as property values and loan balances change
  • See your total portfolio leverage at a glance
  • Model paydown vs. new acquisition scenarios