Writeoff Rate Calculator

Writeoff rate benchmarks portfolio credit quality.

Annual billings

Bad debt written off

Recovered from writeoffs

Writeoff rate

0.02%

Net bad debt

$384,000

Recovery %

0.2%

How the math works

Writeoff rate = bad debt / billings. Net bad debt = written off − recovered.

$24M billings, $480k writeoff = 2.0% — Class B range. $96k recovered (20%) → $384k net bad debt.

How to Use

Enter total annual billings.
Enter bad debt written off.
Enter collections recovered.
Read writeoff rate and net bad debt.

Frequently Asked Questions

Benchmarks?

Class A multifamily: 0.5-1.5% writeoff rate annually. Class B: 1.5-3%. Class C: 3-6%. Retail: 1-3% depending on tenant mix. Office: typically <1% given credit quality. Industrial: <0.5%. Benchmarks useful for comparing to peer portfolios.

Pandemic impact?

2020-22 writeoff rates temporarily inflated 2-4x pre-pandemic norms. 2023-24: reverted near normal. Pandemic eviction moratoriums artificially suppressed writeoffs as forbearances; true loss rates not visible until moratoriums expired.

Timing of writeoff?

Typically 90-180 days post-move-out after deposit applied and agency placement attempted. Aggressive accounting: 60 days. Conservative: 180 days. Industry benchmarks vary — always clarify policy when comparing.

How does this interact with the rest of the capital stack?

Each tier of the stack affects the next. Senior debt constrains LTC and DSCR. Mezz and pref consume equity spread. Interest rate hedges protect DSCR but cost premium. Always model the full stack holistically — optimizing one tier alone often degrades another. Institutional underwriters run three or four scenarios across the stack before committing capital.