> For the complete documentation index, see [llms.txt](https://docs.goldfinch.finance/goldfinch/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.goldfinch.finance/goldfinch/goldfinch-v1/borrower-mechanics/goldfinchs-capital-providers/sample-backer-economics.md).

# Sample Backer Economics

Let's take the below deal terms as an example of how back-leverage works:

**Hypothetical Transaction:**

* Facility Size - $5,000,000
* Borrower Coupon - 12%
  * Senior Net Coupon = % Gross Coupon - 20% Junior Relocation - 10% Pool Reserve
  * Junior Net Coupon = % Gross Coupon + 20% Junior Relocation - 10% Pool Reserve
* Leverage Ratio - 4x
* Backer Investment: $1,000,000
* Senior Pool Investment: $4,000,000

**Senior Pool Economics:** 8.4%

**Backer Economics:** 20.4%

The table below shows the economics for both the Backers and the Senior Pool for a Borrower Pool with details above. You can download this sheet [here](https://docs.google.com/spreadsheets/d/1NB3kXFQTh3CxMhJSk8hHlMhgtxlcz8hBsaVu0O_JjEg/edit?usp=sharing).

![](https://1471178566-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MlGaVCGIXm8i0k0uhfS%2Fuploads%2FfFa4KIXoUBetFY1oEQ7v%2Fbacker-economics-gitbook%20\(1\).png?alt=media\&token=357ce437-a292-44c7-b090-c66902c10fb6)