Am I Using the Rehab Calculator Correctly?

[Lisa Dreher]

Hi everyone. I have analyzed a bunch of deals but am getting tripped up with one part of it. When I put the rehab cost in, is it assumed that I'm paying with cash? Is it not being added onto the purchase price? For example:

Purchase Price: $80,000

Rehab: $20,000

Closing cost: $3,000

Loan amount (according to calculator): $68,000 (15% down)

However, my actual loan amount is $87,550 (15% of $103,000- purchase + rehab + closing).

Is this normal that I should have to put my rehab cost in with the purchase price?

Thanks!