Income Calculation Tools
Fannie Mae & Freddie Mac Income Worksheets
Calculate your qualifying income the way underwriters do. Understand depreciation add-backs, Schedule E analysis, and bank statement income calculations.
Schedule E Rental Income Analyzer
How Underwriters Analyze Schedule E
Underwriters start with gross rents and subtract operating expenses, but they ADD BACK certain non-cash or financing-related expenses: Insurance, Property Taxes, Mortgage Interest, Depreciation, HOA Dues, and one-time repairs. This gives a more accurate picture of cash flow.
Total Non-Add-Back Expenses: $6,700
✓ Added Back
✓ Added Back
✓ Added Back (if non-recurring)
✓ Added Back
✓ Added Back (non-cash)
✓ Added Back
Total Add-Back Expenses: $31,500
Net Income (Tax Return)
-$2,200
Line 21 on Schedule E
Qualifying Income (Annual)
$29,300
After add-backs
Monthly Qualifying Income
$2,442
Used for DTI calculation
| Gross Rents (Line 3) | + $36,000 |
| Less: Operating Expenses (Non-Add-Back) | - $6,700 |
| Net Operating Income | $29,300 |
| Add-Back Items (not deducted for qualification): | |
| Insurance, Taxes, Interest, Depreciation, HOA, Repairs | ($31,500 not deducted) |
| Qualifying Rental Income | $29,300/year |
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