Asset Depletion Input Form
This educational calculator estimates monthly income created from eligible assets. Always confirm current investor, lender, and underwriting rules before using results.
Formula Used
This calculator applies asset eligibility percentages first. It then subtracts transaction deductions and required reserves. The remaining net eligible assets are divided by the loan term in months.
Eligible Asset Value = Asset Balance × Eligibility Factor
Gross Eligible Assets = Sum of Eligible Asset Values
Net Eligible Assets = Gross Eligible Assets − Down Payment − Closing Costs − Reserves − Other Deductions
Monthly Asset Income = Net Eligible Assets ÷ Loan Term Months
Total Qualifying Income = Existing Monthly Income + Monthly Asset Income
Total Debt Ratio = (Housing Payment + Monthly Debts) ÷ Total Qualifying Income × 100
Factors are editable because lender treatment can vary by asset type, documentation, liquidity, retirement access, and underwriting findings.
How to Use This Calculator
Enter available asset balances first. Use current documented values. Then set the eligibility factor for each asset class. Cash is often treated differently from volatile market accounts. Enter the down payment, closing costs, required reserves, and other deductions. Add the loan term in months. A thirty year loan usually uses 360 months. Add existing monthly income, monthly debts, and proposed housing payment. Press the calculate button. The result will appear above the form. Download the CSV file for spreadsheet review. Download the PDF for a simple saved report.
Example Data Table
| Scenario | Gross Assets | Deductions | Term | Estimated Monthly Asset Income |
|---|---|---|---|---|
| Conservative | $500,000 | $125,000 | 360 months | $1,041.67 |
| Moderate | $750,000 | $150,000 | 360 months | $1,666.67 |
| Shorter Term | $750,000 | $150,000 | 180 months | $3,333.33 |
Asset Depletion Planning Guide
What Asset Depletion Means
Asset depletion converts eligible assets into estimated monthly income. It can help borrowers with strong savings but limited regular income. The method is commonly reviewed in mortgage underwriting. It does not replace lender approval. It supports a clearer income picture.
Why Eligibility Factors Matter
Not every dollar receives equal treatment. Cash may be easier to document. Market accounts can change in value. Retirement accounts may have restrictions. Business funds may need extra review. Eligibility factors help create a cautious estimate.
Deductions Are Important
Asset depletion should use funds remaining after the transaction. Down payment money is not usually available afterward. Closing costs also reduce usable assets. Reserve requirements can reduce available balances further. This calculator subtracts those items before income is estimated.
Loan Term Effect
The selected term changes monthly income. A longer term spreads assets across more months. This creates lower monthly income. A shorter term divides assets across fewer months. That creates higher monthly income. Use the same term expected for the mortgage.
Debt Ratio Review
The tool also estimates housing and total debt ratios. These ratios compare payments with qualifying income. Lower ratios may show stronger affordability. Higher ratios may require more income or fewer debts. Lenders review many additional details.
Best Use
Use this calculator for planning. Test different assets, terms, and deduction amounts. Compare conservative and optimistic scenarios. Keep supporting statements ready. Review final numbers with a qualified mortgage professional. Guidelines can change. Loan files can also receive different findings.
FAQs
1. What is asset depletion income?
Asset depletion income is estimated monthly income created by dividing eligible remaining assets over a selected loan term.
2. Does this calculator guarantee loan approval?
No. It is only an educational estimator. Actual approval depends on lender rules, documentation, credit, property, debts, and underwriting findings.
3. Why are asset factors included?
Factors adjust asset balances for liquidity, volatility, restrictions, and documentation risk. They help create more conservative qualifying estimates.
4. Why subtract down payment and closing costs?
Those funds are used for the transaction. The calculator estimates income from assets expected to remain after required costs.
5. What loan term should I enter?
Enter the expected mortgage term in months. For example, use 360 for a thirty year loan or 180 for fifteen years.
6. Can retirement assets be counted?
They may be considered in some cases. Access, age, penalties, documentation, and lender rules can affect the usable percentage.
7. What is total qualifying income?
It is existing monthly income plus estimated monthly asset depletion income. The calculator uses it for ratio estimates.
8. Should I use official underwriting guidance?
Yes. Always verify current lender and agency requirements. This calculator is for planning and does not provide underwriting approval.