Asset Depletion Calculator
An asset depletion calculator turns savings and investments into a monthly qualifying income figure. Each account is counted at the share the investor allows, the money you need to close and any required reserves come off the top, and what remains is divided by the investor’s set number of months, often 60. No job is required.
Written by Tanner Cook, NMLS #2090424 · Updated
How the estimate works: each balance × the share counted, added up, minus what you set aside for closing and reserves, ÷ the investor's set number of months.
One total: the cash you'll bring to closing plus any reserves the investor requires, if it comes out of the accounts above. It comes off before the division, because money spent at closing can't also produce income. Your loan officer can help you estimate it.
Many non-QM investors divide by 60 months; others use a longer period, which lowers the monthly figure.
Your estimate
Estimated qualifying monthly income
— / mo
Enter at least one account balance to see an estimate.
Monthly qualifying income only. This tool doesn't estimate a loan amount, a payment or a rate.
Estimate for illustration only. This calculator is for educational purposes and is not a loan approval, pre-qualification, or commitment to lend. Which assets count, the share counted, the funds required for closing and reserves, and the number of months are set by each investor, so actual qualifying income may differ. Non-QM loan programs require alternative income documentation. All loans are subject to underwriting approval, income and asset verification, property appraisal, and an ability-to-repay determination. Not all applicants will qualify. Program availability and guidelines are subject to change without notice. Cornerstone First Mortgage, LLC NMLS #173855.
How is asset depletion income calculated?
Asset depletion treats your savings and investments as if you drew them down evenly over a set number of months. The investor decides which accounts count, the share of each balance it counts and the number of months, so the same accounts can produce different figures with different investors.
List the eligible accounts
Checking, savings, brokerage and retirement accounts that are in your name, seasoned (typically shown by a couple of months of statements) and liquid or reasonably liquid.
Count each at the investor’s share
Each balance is multiplied by the share the investor allows. Market and retirement accounts are often counted at less than their full balance.
Take off what you need to close
The funds you need to close and any required reserves come off the total, because money spent at closing can’t also produce income.
Divide by the investor’s months
What remains is divided by the investor’s set number of months, often 60. The result is monthly qualifying income, used in the ability-to-repay review like any other income.
Example: from account balances to monthly income
Hypothetical example. The shares counted are illustrations, not a quote of any investor's guidelines.
Balances: $300,000 in checking and savings and $800,000 in a brokerage account. The cash for closing and reserves is held in a separate account that isn't part of the calculation, so nothing more comes off.
If the investor counts the checking and savings in full and the brokerage account at 75% of its balance, the counted assets are $300,000 + $600,000 = $900,000.
Divided by 60 months, that is $15,000 a month of qualifying income. An investor that divides by 120 months would count $7,500 a month from the same accounts.
Non-QM asset depletion vs. Fannie Mae's asset method
Conventional loans have their own version. Fannie Mae's employment-related assets method divides by the number of months in the loan's amortization term, a longer divisor than the 60 months many non-QM investors use, so the same assets produce a smaller monthly figure.
| Non-QM asset depletion | Fannie Mae (B3-3.4-06) | |
|---|---|---|
| Which assets | Checking, savings, brokerage, retirement and other liquid accounts the investor accepts, each at the share it allows | Employment-related assets: 401(k), IRA, SEP and Keogh accounts with unrestricted access, or a severance package or lump-sum retirement distribution from an employer. Checking and savings generally aren't eligible unless funded by one of those |
| What comes off first | The funds you need to close and any required reserves | The penalty that would apply to a full withdrawal, plus the funds used for closing and required reserves |
| Divided by | The investor's set number of months, often 60 | The months in the loan's amortization term |
Asset depletion questions
What is an asset depletion loan?
An asset depletion loan, also called an asset-based loan, is a non-QM mortgage that turns savings and investments into qualifying income, so no job is required. The lender counts each eligible asset at the share the investor allows, subtracts the funds you need to close and any required reserves, then divides by the investor’s set number of months (often 60).
How do lenders calculate income from assets for a mortgage?
For asset depletion, lenders multiply each eligible account balance by the share the investor counts, add the results, subtract the funds needed to close and any required reserves, and divide what remains by the investor’s set number of months, often 60. The result is treated as monthly qualifying income in the ability-to-repay review.
Which accounts count toward asset depletion?
Asset depletion usually counts checking, savings, brokerage and retirement accounts such as 401(k)s and IRAs, as long as the money is yours, seasoned and liquid or reasonably liquid. Illiquid holdings, such as a private business interest or real estate equity, usually cannot be counted the same way. Which accounts count, and at what share, varies by investor.
Why are retirement accounts counted at a reduced share for asset depletion?
Retirement accounts are often counted at a reduced share for asset depletion because withdrawals can trigger taxes or early-withdrawal penalties and market values move. The investor sets the share. Fannie Mae’s conventional method subtracts the penalty that would apply if the account were fully withdrawn.
Why does the money for closing come off before dividing?
On an asset depletion loan, the funds you need to close and any required reserves come off before dividing because that money is spent at closing or must stay in your accounts. It can’t also be drawn down as income, so only what remains is turned into monthly qualifying income.
How is Fannie Mae’s asset method different from non-QM asset depletion?
Fannie Mae’s conventional method (Selling Guide B3-3.4-06) uses employment-related assets such as 401(k), IRA, SEP and Keogh accounts, or a severance package or lump-sum retirement distribution from an employer. It subtracts any early-withdrawal penalty and the funds used for closing and reserves, then divides by the months in the loan’s amortization term. Non-QM investors set their own number of months, often 60.
Do I need a job to qualify with asset depletion?
No. Asset depletion qualifies you on documented savings and investments instead of employment income, so no job is required. The lender still verifies the assets and your credit, and makes an ability-to-repay determination on the calculated income.
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Want a real number from your statements?
Tell us which accounts you have and we'll check which investors count them, at what share, and over how many months. Or take the two-minute qualifier first.
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