Profit & Loss Expense Factor Calculation

Gross Revenue from Profit and Loss Statement: user entry required for total gross revenue from a borrower provided profit and loss statement

Expenses from Profit and Loss Statement: user entry required for total gross revenue from a borrower provided profit and loss statement

Expense Factor (Expenses / Gross Revenue): Expenses from Profit and Loss Statement divided by Gross Revenue from Profit and Loss Statement expressed as a percentage

Total Allowable Deposits minus Expenses: Gross Revenue from Profit and Loss Statement minus Expenses from Profit and Loss Statement

Total Allowable Deposits x Expense Factor x % Ownership: Total Allowable Deposits minus Expenses multiplied by Borrower % Ownership of Business

Qualifying Income: Total Allowable Deposits x Expense Factor x % Ownership divided by Total Months Included

Tolerance of Allowable Deposits / Gross Revenue:  Total Included Deposits divided by Gross Revenue from Profit and Loss Statement expressed as a percentage