# Calculator

The first step that you have to do to take out the loan through the Loan Farming Protocol is to use the Calculator.&#x20;

You can find it on the Terra Land platform under the Loan Farming tab ([https://terraland.io/loan-farming](https://terraland.io/loan-farming)).

See the Calculator's explanation below.&#x20;

![ ](https://2530231091-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FRai32NOLPtDUjDiViQiy%2Fuploads%2FkjyBEebfVGcLZcaDJ607%2FGroup%2076.png?alt=media\&token=88cb645d-82e6-43fb-a863-8822050497d3)

1. **Loan Stake (Real Property Tokens)**: This is where the user inputs the $UST value of the Real Property Tokens they would like to deposit into the Loan Farming protocol and receive a loan on. These will be used as a collateral, and locked in the smart contract until the loan is repaid in full. Once completed, the RPTs are released back to the user.
2. **Tiers**: Users are able to select from 3 financing tiers. The requirements to qualify for that tier is stated as the Stake Requirement. This requirement amount is a percentage of the loan stake given through the Loan Farming protocol (i.e. collateral provided). Loan stake is the UST value of the RPTs deposited into the smart contract. Qualifying for a specific tier unlocks better Interest Rates, and higher APR Rewards in $TLAND tokens. The Interest Rate and APR Rewards are paid on the Loan Amount taken.
3. **Loan to Value**: Ratio of Mortgage Amount over Appraised Property Value. In terms of Loan Farming it is the percentage of the collateral that will be returned as a loan (ie. 10,000 RPT in $UST at 70% LTV results in a loan of 7,000 $UST). This percentage is automatically supplied in the process of taking out a loan through the protocol, as specific values are bound to specific properties.
4. **Net Rent Income**: Expected rate of return of the given property. This value equals the rent yield, minus all expenses for that property. This value is estimated for each property, and is given in that property’s relevant card.
5. **Return on Anchor**: Expected Return on Investment through the utilisation of the loan in other investment vehicles. This is what the user expects the Loan Value to increase by when used in other yield-generating ventures (eg. As an example, users can use Anchor Protocol to generate that yield on their loan)
6. **Required $TLAND**: This is the amount of $TLAND the user needs to have on their wallet to meet the requirements of the Tier selected above. This requirement is displayed in $UST, as well as in $TLAND token amount at the given market rate.
7. **Estimated Total Yield**: Based on all input parameters, the Estimated Total Yield is the sum of expected returns, yields, and interest. This is what the user can use as an estimate for their returns through the use of the Loan Farming protocol. This value is weighted, meaning it is the Estimated Total Yield on the total investment  \[ie. Total Investment = Loan Stake + $TLAND Required]
8. **Not Enough $TLAND**: This message will display when the user is preparing their Loan Farming arrangements, and the platform notices the user does not have enough $TLANDs to meet the requirement for the Tier. This can also appear when the user does not have their Terra Station wallet connected to the platform.
