Wraparound Mortgage (All-Inclusive Trust Deed) Arbitrage Cash-on-Cash Yield Calculator

Calculate monthly payment spread and annualized return on a wraparound real estate note.

Monthly Wrap Cash-Flow Spread
1,354.79 USD/mo
Annualized Return on Wrapped Equity 18.06 %/yr
Incoming Wrap Buyer Payment 2,657.02 USD/mo
Outgoing Underlying Loan Payment 1,302.23 USD/mo
Inputs
⚡ Scenarios:
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
currency
Total wraparound note principal balance charged to the buyer.
%/yr
Interest rate charged on the wraparound note (30-yr amortization).
currency
Underlying senior mortgage balance being wrapped.
%/yr
Interest rate on the underlying mortgage (30-yr amortization).
Results & Graph
Monthly Wrap Cash-Flow Spread
1,354.79 USD/mo
Annualized Return on Wrapped Equity
18.06 %/yr
Incoming Wrap Buyer Payment
2,657.02 USD/mo
Outgoing Underlying Loan Payment
1,302.23 USD/mo

Monthly Wrap Cash-Flow Spread

Graph 1 • Wraparound Mortgage Yield • Domain Architecture & Live Telemetry Maps Wrap Note Principal, Wrap Note Interest Rate Pct, Underlying Mortgage Balance through Wraparound Mortgage Yield Formula.
REAL ESTATE & HOME LOANS Monthly Wrap Cash-Flow Spr 1,354.79 USD/mo Annualized Return on Wrapp 18.06 %/yr Wraparound Mortgage Yield • Component Waterfall Monthly Wrap Cash-Flow Spread 1,354.79 USD/mo Annualized Return on Wrapped E 18.06 %/yr Incoming Wrap Buyer Payment 2,657.02 USD/mo Outgoing Underlying Loan Payme 1,302.23 USD/mo
Graph 2 • Monthly Wrap Cash-Flow Spread Across Wrap Note Principal Sweep (40% → 160%) Evaluates MonthlySpread = WrapBuyerPayment − UnderlyingMortgagePayment; CashOnCa across 7 operating points (current input highlighted).
-239.4 USD/mo 1.5k USD/mo 3.2k USD/mo -239.4 152.0k 292.0 228.0k 823.4 304.0k 1.4k 380.0k 1.9k 456.0k 2.4k 532.0k 2.9k 608.0k
Graph 3 • Joint Sensitivity: Wrap Note Principal × Wrap Note Interest Rate Pct Compares Monthly Wrap Cash-Flow Spread when Wrap Note Interest Rate Pct is shifted +25% (solid) vs. −25% (dashed).
0 USD/mo 1.5k USD/mo 3.1k USD/mo --- Wrap Note Interest Rate Pct @ 75% 910.2 -30% 1.4k -15% 1.9k +0% 2.3k +15% 2.8k +30%
Summary: Collecting USD 2,657.02/mo on the wrap note while paying USD 1,302.23/mo on the underlying loan yields USD 1,354.79/mo (USD 16,257.00/yr, or 18.06% return on the USD 90,000.00 equity slice).
Summary: Collecting USD 2,657.02/mo on the wrap note while paying USD 1,302.23/mo on the underlying loan yields USD 1,354.79/mo (USD 16,257.00/yr, or 18.06% return on the USD 90,000.00 equity slice).
⚡ Send result to: Income Tax & Paycheck →Compound Interest →Mortgage →
Interactive chart & math engine powered by CalculatorGraph

Formula & Mathematical Methodology: Wraparound Mortgage Yield Formula

MonthlySpread = WrapBuyerPayment − UnderlyingMortgagePayment
CashOnCashReturn% = (MonthlySpread × 12) / SellerNetEquityLeftInDeal × 100
MonthlySpread = WrapBuyerPayment − UnderlyingMortgagePayment; CashOnCashReturn% = (MonthlySpread × 12) / SellerNetEquityLeftInDeal × 100
  • wrapNotePrincipal: Wrap Note Principal (currency)
  • wrapNoteInterestRatePct: Wrap Note Interest Rate Pct (%/yr)
  • underlyingMortgageBalance: Underlying Mortgage Balance (currency)
  • underlyingInterestRatePct: Underlying Interest Rate Pct (%/yr)

Rounding: Currency outputs round to 2 decimal places; effective rates and multiples display to 2 decimal places.

Worked Example: Benchmark Scenario: Wraparound Mortgage Yield

Calculate monthly payment spread and annualized return on a wraparound real estate note.

  1. Enter your financial, equity compensation, or tax parameters.
  2. Evaluate the governing equation: MonthlySpread = WrapBuyerPayment − UnderlyingMortgagePayment; CashOnCashReturn% = (MonthlySpread × 12) / SellerNetEquityLeftInDeal × 100.
  3. Review the primary result, supporting metrics, and 3 interactive SVG charts.
Result: Computes Wraparound Mortgage Yield via MonthlySpread = WrapBuyerPayment − UnderlyingMortgagePayment; CashOnCashReturn% = (MonthlySpread × 12) / SellerNetEquityLeftInDeal × 100.

Frequently Asked Questions

How does the Wraparound Mortgage (All-Inclusive Trust Deed) Arbitrage Cash-on-Cash Yield Calculator calculate results?

It evaluates MonthlySpread = WrapBuyerPayment − UnderlyingMortgagePayment; CashOnCashReturn% = (MonthlySpread × 12) / SellerNetEquityLeftInDeal × 100 directly in your browser and updates three custom SVG visualizations in real time.

Can I use Goal Seek to solve backwards for a target amount?

Yes. Click "🎯 Goal Seek" in the results toolbar to solve backwards for any numeric input parameter.

Are my financial and compensation numbers kept private?

Yes. All calculations execute 100% locally in your browser with zero server transmission.

Finance & Investing · Real Estate & Home Loans

Wraparound Mortgage (All-Inclusive Trust Deed) Arbitrage Cash-on-Cash Yield Calculator: inputs, method, and how to read the result

Calculate monthly payment spread and annualized return on a wraparound real estate note.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
  • Wrap Note Principal: Total wraparound note principal balance charged to the buyer.
  • Wrap Note Interest Rate Pct: Interest rate charged on the wraparound note (30-yr amortization).
  • Underlying Mortgage Balance: Underlying senior mortgage balance being wrapped.

What the calculation includes

With the default values shown, Monthly Wrap Cash-Flow Spread is 1,354.79 USD/mo. The calculation follows Wraparound Mortgage Yield Formula; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Wrap Note Principal from 380,000 currency to 418,000 currency changes Monthly Wrap Cash-Flow Spread from 1,354.79 USD/mo to 1,620.49 USD/mo. This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Uses published statutory rules, standard compounding conventions, and marginal tax rates entered by the user.
  • For educational and financial planning analysis; consult a CPA or qualified advisor for personalized tax filings.

Scope: Global / US / India / UK / Canada / Australia Statutory Standards Check the assumptions and limitations against your situation before relying on the estimate.

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