diff --git a/common/sell-bet.ts b/common/sell-bet.ts
index 1bdc1fd6..5392ab67 100644
--- a/common/sell-bet.ts
+++ b/common/sell-bet.ts
@@ -88,6 +88,7 @@ export const getCpmmSellBetInfo = (
   shares: number,
   outcome: 'YES' | 'NO',
   contract: FullContract<CPMM, Binary>,
+  prevLoanAmount: number,
   newBetId: string
 ) => {
   const { pool, p } = contract
@@ -98,6 +99,9 @@ export const getCpmmSellBetInfo = (
     outcome
   )
 
+  const loanPaid = Math.min(prevLoanAmount, saleValue)
+  const netAmount = saleValue - loanPaid
+
   const probBefore = getCpmmProbability(pool, p)
   const probAfter = getCpmmProbability(newPool, p)
 
@@ -121,10 +125,11 @@ export const getCpmmSellBetInfo = (
     probBefore,
     probAfter,
     createdTime: Date.now(),
+    loanAmount: -loanPaid,
     fees,
   }
 
-  const newBalance = user.balance + saleValue
+  const newBalance = user.balance + netAmount
 
   return {
     newBet,
diff --git a/functions/src/sell-shares.ts b/functions/src/sell-shares.ts
index a7753b0e..e4dbcbc9 100644
--- a/functions/src/sell-shares.ts
+++ b/functions/src/sell-shares.ts
@@ -51,6 +51,8 @@ export const sellShares = functions.runWith({ minInstances: 1 }).https.onCall(
         contractDoc.collection('bets').where('userId', '==', userId)
       )
 
+      const prevLoanAmount = _.sumBy(userBets, (bet) => bet.loanAmount ?? 0)
+
       const [yesBets, noBets] = _.partition(
         userBets ?? [],
         (bet) => bet.outcome === 'YES'
@@ -77,6 +79,7 @@ export const sellShares = functions.runWith({ minInstances: 1 }).https.onCall(
         shares,
         outcome,
         contract,
+        prevLoanAmount,
         newBetDoc.id
       )