> ## Documentation Index
> Fetch the complete documentation index at: https://help.finerd.ai/llms.txt
> Use this file to discover all available pages before exploring further.
# Track a loan or mortgage
> Add a mortgage, car loan or other loan to finerd as a negative balance, record repayments and interest, and see the debt in your net worth.
To track a loan or mortgage in finerd, add a **Loans & Mortgage** account and enter the amount you still owe as a **negative** number, such as −180,000 USD. finerd then counts it among your liabilities and subtracts it from your [net worth](/reports/net-worth). Each repayment is a transfer from your bank account to the loan, so the debt shrinks as you pay.
Loan accounts are free on the web, Android and iOS. On Android you can't enter a negative amount, so add the loan and set its balance on the web or in the iOS app. [Financial Plan](/financial-plan/using-financial-plan), where you can project the loan with an interest rate, is a finerd Pro feature on the web and iOS.
How finerd records a loan
A loan account holds one number: what you still owe, with a minus sign. A mortgage with 180,000 USD left to pay has a balance of −180,000 USD. When you pay 290 USD off it, the balance becomes −179,710 USD.
The sign matters. finerd doesn't turn a loan amount negative for you: if you enter 180,000 without the minus, finerd treats it as money you own, shows it among your assets and adds it to your net worth. See [If the loan shows as an asset](#fix-sign).
finerd doesn't know your interest rate, term or payment schedule, and it doesn't add interest to the balance. The balance changes only through the repayments and checks you record. To keep it in line with your lender, compare it with your loan statement from time to time; see [Record a repayment](#repayment).
Loans can't be connected to finerd. If your bank connection includes a loan, it arrives under **Bank accounts** with a negative balance, and a connected account can't change its type.
Add a loan or mortgage
In the example, a mortgage is tracked as **Maple Street mortgage** with 180,000 USD left to pay.
1. Open **Accounts**, select **Add account**, then **Loans & Mortgage**.
2. Enter a name, such as **Maple Street mortgage**, then select **Continue**.
3. On **Set current balance**, type a minus first, then the amount you owe: **-180000**. You can use the **−** key on the calculator or on your keyboard.
4. Check the currency and select **Continue**.
5. Select **Save**.
On Android, the amount on a new account can't be negative, so a loan added there would count as an asset. Add the loan on the web or in the iOS app.
After that, the loan appears in **Accounts** on Android under **Loans & Mortgage**, and you can record repayments there.
1. Open **Accounts** from **More** or the tab bar, tap **+**, then **Loans & Mortgage**.
2. Enter a name, such as **Student loan**, then tap **Save**.
3. On **Set current balance**, tap **−** first, then enter the amount you owe, such as **9500**. Tap **Continue**.
4. Check that the name and the negative balance are shown, then tap **Save**. If the name field is empty, enter the name again. If finerd then shows **Empty Account name not allowed**, tap **OK**, tap the name, add a space at the end and tap **Save** again.
finerd records the amount as the loan's **Initial balance**. The loan appears in **Accounts** under **Loans & Mortgage**.
If you already track the loan as another type of account, such as a bank account, open it and change the type with **⋮** > **Change account type**. The balance keeps its sign, so check that it's negative afterwards. See [Change the account type](/accounts/create-account#change-account-type).
If the loan shows as an asset
If you entered the amount without a minus, the loan counts as something you own. On the web, it shows in the **Assets** column of **Accounts** instead of **Liabilities**; on Android and iOS, the balance has no minus sign. Correct the amount you entered when you added the loan.
In the example, **Hatchback car loan** was added with 12,000 instead of −12,000.
1. Open **Accounts**, select the loan, then select its balance, such as **USD**.
2. In **Verified balances**, select the check from the day you added the loan.
3. Select the amount, enter it with a minus, such as **-12000**, then select outside the calculator to apply it.
4. Select **Save**.
Correct the amount on the web or in the iOS app. On Android, the amount of a check keeps its sign, so a positive amount can't be made negative there.
1. Open **Accounts** from **More** or the tab bar, tap the loan, then tap its balance.
2. In **Verified balances**, tap the check from the day you added the loan.
3. Tap the amount, tap **AC**, then **−**, and enter the amount, such as **12000**. Tap **Apply**.
4. Tap **Save**.
finerd recalculates the **Initial balance** from the corrected check, so the loan is negative from the start. For more about checks, see [Correct or delete a check](/verified-balance#correct-or-delete-a-check).
Record a repayment
Record a loan payment as a transfer from the account you paid from to the loan account. The money leaves your bank account and the debt goes down by the same amount. finerd lists the payment as **Unknown merchant**, not **Internal transfer**, and doesn't count it as spending.
A payment to your lender usually covers interest too. Interest is a cost, so if you want it in your expenses, split it off: the interest part goes to an expense category, and only the rest reduces the loan. Your lender's statement shows how a payment is divided.
In the example, a car loan payment of 350 USD from **Pine checking** covers 290 USD of the loan and 60 USD of interest.
1. Add a transfer: **Add transaction** on the web, **+** on Android and iOS, then **Internal transfer or ATM**.
2. As the account the money left, choose the account you paid from, such as **Pine checking**, and enter the whole payment, **350**.
3. As the account the money went to, choose the loan. Loan accounts are listed under **Loans & Mortgage**.
4. Check the amount received and continue. finerd opens the transaction.
5. To record the interest, select **Split** next to **To**, choose an expense category, such as **Bank fees**, and enter the interest, **60**. The loan line keeps the rest, 290 USD.
6. Select **Save**.
For the full transfer steps on each platform, see [Move money between your accounts](/transactions/transfer-or-exchange#transfer); for splitting, see [Split a transaction](/transactions/split-transaction#other-parts). To use a category of your own, such as **Loan interest**, [add it](/transactions/categories-merchants-tags#add-category) first. On Android, an account connected to a bank isn't offered in the transfer steps.
After you save, the loan balance goes from −12,000 to −11,710 USD, and the 60 USD of interest appears in the Expenses report.
**If the payment came from your connected bank**, finerd imported it as an expense. Open it and, in place of the category, choose the loan under **Transfer To/From**. If it isn't shown, select **Show all** or search for it. Then split off the interest as in step 5.
**If you don't split the interest**, record the whole payment as the transfer. Your loan in finerd then goes down faster than at the lender. When you get a statement, add a [verified balance](/verified-balance#add-a-verified-balance) to the loan with the amount still owed, as a negative number. finerd books the difference as a **Balance correction**, which changes the loan and your net worth but isn't counted as spending.
Where the loan shows up
**Accounts** lists your loans under **Loans & Mortgage**. On the web, the amount owed is in the **Liabilities** column, without a minus; the loan's own page shows the balance with a minus. On Android and iOS, the list shows the balance with a minus.
[Net Worth](/reports/net-worth) adds your loans to **Total Liabilities** and subtracts them from your assets. Each month shows what you owed at the end of that month, so every repayment lowers the line. If a loan raises your net worth instead, its balance is positive: see [If the loan shows as an asset](#fix-sign).
In [Cash Flow](/reports/income-expenses-cash-flow#cash-flow) on the web, repayments appear under **Cash Outflows** in **Debts**, with a line for each loan. The interest you split off counts in its expense category.
[Financial Plan](/financial-plan/using-financial-plan), a finerd Pro feature on the web and iOS, adds your loans to a new scenario under **Liabilities**. Each loan starts with an **Interest rate** of 4% a year; change it to your loan's rate. Under **Payoff**, choose **Amount** and enter the payment in **Annual pay**, or choose **Period (years)** and enter the years left in **Pay years**. An active loan needs one of the two before you can save the scenario.
Related articles
* [Understand your net worth](/reports/net-worth)
* [Track your property](/investments/track-property)
* [Create and set up an account](/accounts/create-account)
* [Verified balance](/verified-balance)
* [Record a transfer or currency exchange](/transactions/transfer-or-exchange)
* [Split a transaction](/transactions/split-transaction)
* [Using Financial Plan](/financial-plan/using-financial-plan)
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