Example Data Table
| Input Item |
Example Amount |
Purpose |
| Retirement assets |
$420,000 |
Eligible vested retirement funds. |
| Depository and securities |
$185,000 |
Bank, brokerage, and securities balances. |
| Funds to close |
$75,000 |
Down payment and closing costs. |
| Borrowed, gift, or pledged funds |
$20,000 |
Amounts removed before division. |
| Net eligible assets |
$510,000 |
Assets remaining after required deductions. |
| Monthly qualifying asset amount |
$2,125 |
$510,000 divided by 240. |
Formula Used
The calculator follows this planning structure:
Total eligible documented assets = eligible asset balances minus ineligible or unverified assets.
Net eligible assets = total eligible documented assets minus funds to close, gift funds, borrowed funds, pledged assets, unsourced deposit reductions, and other exclusions.
Monthly qualifying asset amount = net eligible assets ÷ 240.
Total qualifying income = monthly qualifying asset amount plus other qualifying monthly income.
Estimated DTI = total monthly debts ÷ total qualifying income × 100.
This page is a planning tool. Final qualification depends on full lender underwriting, documentation, program limits, and current investor rules.
How to Use This Calculator
- Enter only documented assets that may be eligible.
- Subtract assets needed for closing, gifts, borrowed funds, and encumbrances.
- Add optional debts, housing payment, loan amount, and value.
- Review the monthly qualifying asset amount and estimated DTI.
- Use CSV or PDF buttons to keep a copy of the result.
Understanding Asset Depletion Planning
What the Calculator Does
Asset depletion converts eligible assets into a monthly qualifying amount. It can help borrowers who have strong assets but limited monthly income. The method does not spend the assets inside this page. It only estimates how the assets may support a mortgage review.
Why Deductions Matter
The most important step is the deduction step. Funds needed to finish the transaction cannot also support monthly obligations. Gift funds, borrowed funds, and pledged balances are also removed. This keeps the estimate conservative. It also makes the result easier to review with a loan officer.
Income and Debt Review
After the calculator finds net eligible assets, it divides that amount by 240 months. The result is the monthly qualifying asset amount. You can add other verified monthly income. Then the tool compares total debts with total qualifying income. This creates an estimated DTI ratio. The DTI result is not an approval. It is a planning signal.
Asset Quality and Documentation
Asset type matters. Retirement accounts, depository accounts, securities, lump-sum distributions, and business sale proceeds may follow different documentation paths. Accessibility also matters. Assets should be documented, available, and not double counted as another income source. Cryptocurrency and unsupported balances should be excluded.
Using Results Carefully
Use the output to test scenarios before lender review. Change the funds to close, debts, and loan size to see how the estimate reacts. Download the CSV for spreadsheet work. Download the PDF for a simple file copy. Always confirm final treatment with the lender. Guidelines, overlays, and documentation reviews can change the outcome.
FAQs
1. What is asset depletion?
Asset depletion is a qualifying method that converts eligible assets into a monthly amount for mortgage debt analysis. It helps estimate support from documented assets.
2. What divisor does this calculator use?
It uses 240 months. The monthly qualifying asset amount equals net eligible assets divided by 240.
3. Are funds to close included?
No. Funds required for the transaction are subtracted before the monthly qualifying asset amount is calculated.
4. Should gift funds be removed?
Yes. Gift funds entered in the asset total should be subtracted in this calculator before dividing by 240.
5. Can cryptocurrency be counted?
This calculator treats cryptocurrency as ineligible. Enter those balances under ineligible or unverified assets if they appear in gross balances.
6. Does the result guarantee approval?
No. It is only an educational planning estimate. Lenders must verify documents, eligibility, program rules, and any overlays.
7. Why include DTI?
DTI shows how estimated monthly debts compare with qualifying income. It helps users review whether a scenario appears tight.
8. Why include LTV?
LTV is useful because some asset-based qualification rules may include loan-to-value limits. Always verify the final limit with the lender.