Applicants who upload supported documents for income verification will have a gross and net monthly income amount displayed on their application in multiple places–
On the application overview:
On the Income report:
The gross monthly income amount is used in calculation of income to rent ratio and the net monthly income amount is used in calculation of debt to income ratio.
To calculate both the gross and net monthly income amounts when paystubs, bank statements, or W2s have been uploaded by an applicant:
Boom takes the income amounts from the provided document and makes a projection for a monthly amount by–
Dividing the income amount by the number of days the document is for to get a daily pay amount
Multiplying the daily pay amount by 365 to get a yearly pay amount
Dividing the yearly pay amount by 12 to get a monthly amount
Here's a simplified example of this calculation in use!
An applicant uploaded a paystub that spanned 14 days and had a gross income amount of $1792.
$1792 is divided by 14, making the gross daily pay amount $128.
$128 is multiplied by 365, making the gross yearly pay amount $46,336.
$46,336 is divided by 12, making the gross monthly income amount $3,861.33.
This same order of operations would be repeated to generate the applicant's net income amount.
Please note that this calculation is only used when supported income documents (paystubs, bank statements, or W2s) are uploaded by applicants!