Calculator Inputs
This worksheet is for planning only. It does not replace official guidance, automated findings, lender overlays, or underwriter judgment.
Example Data Table
| Scenario |
Monthly income |
Housing expense |
Other debts |
Total ratio |
Review note |
| Salary borrower |
$6,000.00 |
$2,100.00 |
$500.00 |
43.33% |
Check paystub and W-2 support. |
| Self-employed borrower |
$5,200.00 |
$1,950.00 |
$650.00 |
50.00% |
Review trend and tax schedules. |
| Rental income case |
$7,100.00 |
$2,500.00 |
$900.00 |
47.89% |
Confirm rent and property expense. |
Formula Used
Base salary: annual salary divided by 12, plus any monthly salary amount entered.
Hourly income: hourly rate multiplied by weekly hours, multiplied by 52, then divided by 12.
Variable income: overtime monthly amount, plus averaged bonus, plus averaged commission.
Self-employment income: adjusted annual income equals net profit, plus allowed add-backs, minus recurring reductions. The result is divided by the selected month period and multiplied by ownership percent.
Rental income: gross monthly rent multiplied by the rent factor, minus monthly PITIA. Positive results are income. Negative results are liabilities.
Total income: steady income, variable income, self-employment income, rental income, asset income, other income, and grossed-up income, minus deductions.
Total ratio: proposed housing expense, other liabilities, and rental losses, divided by total qualifying monthly income.
How to Use This Calculator
- Enter file details for easy identification.
- Add salary, hourly, overtime, bonus, and commission figures.
- Enter business income and adjustment figures from reviewed documents.
- Add rental, asset, tax-exempt, and other income sources.
- Enter proposed housing expense, other liabilities, and reserves.
- Press Calculate to show the result above the form.
- Use CSV or PDF buttons to save a worksheet copy.
About This Income Worksheet
Borrower income review is not just a monthly total. It is a file story. A lender checks source, pattern, history, and current stability. This worksheet helps organize those numbers before formal review. It gives a clear estimate for common income types. It also shows debt ratios. Those ratios can guide questions before submission.
The tool separates steady income from variable income. Salary and hourly pay are direct. Bonus, overtime, and commission need history. The calculator can average one or two years. It can also use a conservative method. That helps when recent income is lower.
Self Employment Review
Self employed borrowers often need deeper analysis. Net profit is only the first line. Some non cash expenses may be added back. Some recurring costs should remain deducted. This page lets you enter basic adjustments. It also compares historical monthly income with current year to date income. A large drop does not create an automatic denial. It does signal a need for stronger documentation.
Rental and Other Income
Rental property income can help or hurt ratios. The worksheet applies a rent factor and subtracts PITIA. Positive net rent is added as income. Negative net rent becomes a liability. You can also include dividends, distributions, notes, trust income, and grossed up non taxable income.
Using the Result
The final number is not an approval. It is a planning estimate. Official eligibility depends on the loan file, documents, underwriting findings, and lender policy. Use the result to find missing items early. Save the CSV or PDF for internal notes. Then compare the file against the current guide. This approach keeps the review organized and easier to explain.
Important Checks
Use the estimate with document dates in mind. Paystubs, W-2 forms, tax returns, leases, awards, and bank records must support the entries. Do not mix gross and net figures. Keep one method for each source. Watch declining trends. Check whether income is likely to continue. Separate personal debts from business debts. Note any large gaps or unusual deposits. When numbers look close, request a second review. A small input change can shift ratios. Keep clear notes, because reviewers need repeatable math and support. Store exports with the file before final submission.
FAQs
1. Is this an official Fannie Mae tool?
No. This is an educational worksheet. Use official systems, current guides, and lender procedures for final decisions.
2. Can this calculator approve a mortgage?
No. It only estimates monthly income and ratios. Approval depends on complete documents, credit, assets, collateral, underwriting findings, and lender policy.
3. Why does the calculator compare current self-employment income?
A current decline may affect stability. The worksheet can use lower current income when the current trend is weaker than historical income.
4. How is bonus income calculated?
The calculator can average the selected period, use the latest year, or use the lower year. Choose the method that fits your review policy.
5. How is rental income handled?
Gross rent is multiplied by the rent factor. Monthly PITIA is then subtracted. Positive net rent adds income. Negative net rent adds liability.
6. What does gross-up mean?
Gross-up increases eligible non taxable income by a selected percent. Only use it when documents and guidelines allow that treatment.
7. Why are reserves included?
Reserves do not increase income in this worksheet. They show how many proposed housing payments are supported by verified reserve funds.
8. Why should I download CSV or PDF results?
Exports help keep a review record. They make it easier to compare assumptions, recheck numbers, and discuss file questions with others.