Credit Loss Bridge Calculator

Credit loss has multiple drivers. This calculator decomposes the variance.

Prior credit loss

Delinquency change %

Bad debt write-offs

Concessions change

Bridged credit loss

$232,400

Delinquency impact

$17,400

Total change

$87,400

How the math works

Bridged = prior + delinquency impact + write-offs + concessions change.

Separate write-offs from current-period delinquency in reporting. Write-offs are lagging indicators (reflect issues from 6-12 months ago); current delinquency is leading. Management that only sees the blended number always reacts too late.

How to Use

Enter prior credit loss.
Enter delinquency change %.
Enter bad debt write-offs.
Enter concessions change.
Read bridged credit loss.

Frequently Asked Questions

Credit loss components?

Bad debt (uncollectable). Concessions (one-month free, marketing). Delinquency carry (rent owed, collections cost, legal). Fraud loss (fake ID, synthetic tenants). Each reported differently across operators.

Benchmarks?

MF: 1.5-3% of GPR (good), 4-7% (concerning), >8% (systemic). Commercial: 0.5-2%. Subsidized MF: variable, often 4-8% due to program-driven gaps. Always normalize by portfolio mix.

Reducing credit loss?

Strong screening (income 3x rent, background, credit score floor). Enforce late fees. Same-day pay or autopay incentives. Use collections at 30 days, not 60. Each step reduces credit loss 10-30% cumulative.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.