Estimate your rental income and expenses for Schedule E (Form 1040). See which line each item maps to, calculate your net rental income or loss, and preview the number a mortgage lender would start from. Everything runs in your browser.
Total rent collected during the year
Expense
Schedule E Line
Underwriter worksheets such as Fannie Mae Form 1038 and Freddie Mac Form 92 add these items back to your net income, divide by months in service, then subtract your full monthly payment. How lenders read Schedule E
Residential property depreciates over 27.5 years (building value only, not land).
Annual depreciation: $0
Click "Use this" to apply to your calculation. For the mid-month first year and a full year-by-year schedule, use the rental property depreciation calculator.
Want this calculated automatically, all year?
SealedFolio tracks every expense in the right category, then generates your Schedule E report at the click of a button.
Try SealedFolioThis calculator is for estimation purposes only and does not constitute tax advice. Consult a qualified tax professional for your specific situation. Passive activity loss rules and other limitations may affect your actual deductible amount.
Enter the rent you collected for the year, then fill in the eight expense categories that do most of the work on a rental return: mortgage interest, property taxes, insurance, repairs, management fees, depreciation, legal and professional fees, and everything else under other expenses. The summary maps each entry to its line on Schedule E (Form 1040), totals your expenses on line 20, and shows your net rental income or loss on line 21. That is the number that flows to your Form 1040.
If you do not know your annual depreciation, the estimator divides your building value, cost minus land, by 27.5 years, the recovery period for residential rental property. Nothing you type here is saved or sent anywhere. The math runs in your browser and disappears when you close the tab.
This calculator breaks out the biggest categories. The form itself has fifteen expense lines, and when you file, each cost belongs on its own line:
For an estimate, put anything the calculator does not break out into other expenses so your total is complete, then itemize it on the correct line when you file. Our Schedule E guide for 2026 walks through every line in plain English, and the rental property tax deductions guide covers what qualifies in each category. The form and its official instructions are on IRS.gov.
A property can put cash in your pocket every month and still show a loss on Schedule E, because depreciation is a deduction that costs you nothing in cash. The reverse happens too. Your mortgage principal payment drains cash every month but is not deductible, so a property can be taxable income positive while your bank account shrinks. Run the cash flow calculator to see the cash picture, and use this page for the tax picture. To measure that cash against what you actually put into the property, the cash-on-cash return calculator divides annual pre-tax cash flow by your down payment, closing costs, and upfront repairs. If you are evaluating a property you do not own yet, start with the rental income calculator instead, since Schedule E only reports what actually happened.
Search for a Schedule E calculator and most of what you find are worksheets from mortgage insurers and the agencies, built for underwriters rather than landlords. That is because lenders qualify you using the rental income on your filed Schedule E, and they do not take line 21 at face value.
An underwriter starts with your net income or loss, then adds back the items you already pay through your housing payment or that never cost you cash: depreciation, mortgage interest, property taxes, insurance, and documented one time expenses like a major repair. The result is divided by the number of months the property was in service to get a monthly figure, and the full monthly payment, principal, interest, taxes, insurance, and any association dues, comes out of that. Fannie Mae Form 1038 and Freddie Mac Form 92 both follow this pattern, and the calculators published by mortgage insurers automate the same worksheet.
The lender view in the results panel shows the add-back subtotal from your entries, so you can see the starting number an underwriter would work from before you hand over a tax return. If depreciation is the only thing turning your rental into a paper loss, your Schedule E may still support qualifying income. The depreciation calculator gives you the exact year by year figure, including the mid month first year.
Schedule E holds three properties per form, each in its own column, with the totals combined on lines 23 through 26. More than three properties means additional Schedule E pages, with one combined total across all of them. Run this calculator once per property and keep the records separate for each, which is also exactly what an examiner asks for if a return is ever questioned. SealedFolio tracks each property in its own Schedule E categories through the year, so the per property totals exist before filing season starts.
This calculator runs entirely in your browser. Nothing you enter is saved or transmitted.
Schedule E reports rental income on line 3 and expenses on lines 5 through 19: advertising, auto and travel, cleaning and maintenance, commissions, insurance, legal and professional fees, management fees, mortgage interest, other interest, repairs, supplies, taxes, utilities, depreciation, and other expenses. Line 21 is the net income or loss for each property.
Add up the rent you collected during the year, then subtract every allowable expense including depreciation. The remainder is your net rental income. If expenses exceed income you have a rental loss. This calculator does the math and shows which Schedule E line each entry lands on.
Often, yes. If you actively participate in the rental you can deduct up to $25,000 of losses against other income. The allowance starts shrinking once modified adjusted gross income passes $100,000 and is gone at $150,000. Disallowed losses are not lost, they carry forward to future years.
Underwriters start with your net income or loss, then add back depreciation, mortgage interest, property taxes, insurance, and one time expenses, because your housing payment is counted separately. They divide by the months the property was in service and subtract the full monthly payment. Fannie Mae Form 1038 and Freddie Mac Form 92 both follow this method, and the lender view above shows the same starting number.
Most rentals belong on Schedule E. Schedule C applies when you provide substantial services to guests, things like daily cleaning or meals, which makes the activity look more like a hotel than a rental. Plain long term rentals, and most short term rentals without hotel style service, stay on Schedule E.
Keep a lease for every tenant, bank statements showing rent deposits, receipts or invoices for each expense, a mileage log if you deduct auto and travel, and the depreciation schedule for each property. Schedule E holds three properties per form, each in its own column, so keep records separated by property rather than pooled.
The current Schedule E (Form 1040) and its instructions are published on IRS.gov and the SealedFolio Schedule E guide for 2026 walks through every line in plain English.
Yes, for planning. This free Schedule E calculator estimates your numbers before you file. For the return itself, transfer the totals into your tax software or hand your records to a preparer. SealedFolio tracks every transaction in Schedule E categories through the year so the totals are ready at filing time.
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