Asset depletion calculator
Enter each asset with the percent you count, the funds used to close, and the lender's months divisor to see a monthly figure from assets, for your review of the loan file.
Runs in your browser. What you type isn't sent or stored.
Calculate asset depletion
Assets
Percent counted: the share of the balance the lender counts, for example after a penalty or haircut. There is no default.
Funds used to close
Months divisor
Confirm the divisor with the lender for this loan. There is no default.
How asset depletion is calculated
Net assets = each asset's balance × the percent you count, added up, minus the funds used for down payment, closing costs and reserves. Monthly figure = net assets ÷ the months divisor.
The percent counted and the months divisor are inputs, not settings. Lenders and programs differ on both, so enter the figures the lender gives you and confirm them for the loan.
Fannie Mae's Selling Guide covers this in Fannie Mae Selling Guide B3-3.4-06, Employment Related Assets as Qualifying Income (03/04/2026), which says “The lender must divide "Net Documented Assets" by the amortization term of the loan (in months).” and “"Net Documented Assets" are equal to the sum of eligible assets minus the amount of the penalty that would apply if the account was completely distributed at the time of calculation; and the amount of funds used for down payment, closing costs, and required reserves.” (source). Non-QM asset depletion programs set their own rules.
Worked example
- IRA balance $500,000, counted at 90% (after a 10% penalty, as in the Fannie Mae example): $450,000.
- Down payment $80,000, closing costs $15,000 and reserves $5,000: $100,000 used to close.
- Net assets: $450,000 − $100,000 = $350,000.
- With a 360-month divisor entered: $350,000 ÷ 360 = $972.22 a month.
Round numbers for illustration only; 360 is the divisor in that example, not a default.
Counting each asset
- Add one row per account: checking, savings, retirement, stocks, bonds or mutual funds.
- Enter the percent of each balance the lender counts, for example less an early-distribution penalty or a market-value haircut. Enter 100 to count the full balance.
- Leave out assets the lender doesn't count, or enter 0.
Asset depletion and bank statement loans
A bank statement loan works out income from deposits; asset depletion works from balances. Brokers may look at both for the same self-employed borrower. Where balances come from recent large deposits, see the guide to sourcing large deposits.
For deposits, try the bank statement income calculator, or see the sample worksheet StatementReady builds from the statements.
What this calculator doesn't do
- It doesn't make a lending decision or say which assets count.
- It sets no percent counted and no months divisor. Those vary by lender and program.
- It doesn't work out penalties or taxes; reflect them in the percent counted if the lender asks you to.
- It doesn't read statements. Every figure is the one you type.
Questions
What is asset depletion?
Asset depletion turns a borrower's assets into a monthly income figure by spreading them over a number of months. Some loan programs offer it for borrowers with large balances and little regular income.
How is asset depletion calculated?
Add up each asset at the percent you count, subtract the funds used for down payment, closing costs and reserves, then divide by the months the lender uses. The Fannie Mae Selling Guide B3-3.4-06, Employment Related Assets as Qualifying Income (03/04/2026) says “The lender must divide "Net Documented Assets" by the amortization term of the loan (in months).”
What percent of each asset should I count?
The calculator doesn't set one. Lenders may count part of a retirement account or a stock balance, for example after an early-distribution penalty or a market-value haircut. Enter the percent the lender gives you for each asset.
What months divisor should I use?
The one the lender gives you, confirmed for the specific loan. Divisors differ by lender and program, and the Fannie Mae section above ties it to the loan's amortization term. The calculator has no default.
Why subtract the down payment, closing costs and reserves?
Funds spent to close or held as reserves aren't left to draw on. The Fannie Mae Selling Guide B3-3.4-06, Employment Related Assets as Qualifying Income says “"Net Documented Assets" are equal to the sum of eligible assets minus the amount of the penalty that would apply if the account was completely distributed at the time of calculation; and the amount of funds used for down payment, closing costs, and required reserves.”
Is asset depletion the same as a bank statement loan?
No. A bank statement loan works out income from deposits on the borrower's statements; asset depletion works from balances. A file may use both, so confirm with the lender.
Is anything I type saved?
No. The figures are calculated in your browser, and what you type isn't sent or stored.
Not legal or tax advice.
Ready for the real statements?
Upload 12 or 24 months of PDFs. StatementReady checks whether each statement's transactions add up to its printed balances.
This tool assists your review of the loan file. The lender makes all underwriting decisions.
StatementReady isn't affiliated with or endorsed by Fannie Mae or any lender named here.