Bank Statement Income Calculator
If you're self-employed, your tax returns probably understate what you actually earn. Bank statement loans qualify you on deposits instead. This gives you a rough idea of the income a lender might count.
In short: lenders average 12 or 24 months of deposits. Personal statements typically count most eligible deposits as income; business statements get an expense-factor haircut (often around half) for the cost of running the business. Every lender's analysis differs.
24 months smooths out seasonal swings; 12 months can help if your latest year was stronger.
Personal = deposits into your personal account. Business = deposits into the business account.
Estimated Qualifying Monthly Income
$25,000
How We Got This Number
How Bank Statement Income Analysis Works
Bank statement loans exist because tax returns are built to minimize taxable income — which is great in April and terrible when you apply for a mortgage. Here's how lenders look at deposits instead.
The lender averages your deposits, not your tax returns
The underwriter goes through 12 or 24 months of statements line by line, adds up the deposits that look like business revenue, and divides by the number of months. That average becomes the starting point for your qualifying income. No Schedule C, no add-backs, no explaining why your net income looks small after depreciation and write-offs. For a lot of self-employed borrowers in Tampa Bay — contractors, agents, charter captains, salon owners — this is the difference between qualifying and not.
Personal vs. business statements — why the haircut exists
If you deposit into a personal account, lenders generally treat eligible deposits as income you actually keep, so most or all of the average counts. If you use business statements, the lender knows some of that money pays for materials, payroll, rent, software, and everything else it takes to run the business — so they apply an expense factor before counting the rest. A common starting point is around 50%, but it's not one-size-fits-all: a consultant with a laptop has very different overhead than a roofing company, and lenders account for that.
A CPA letter can change your expense factor
Many programs let you support a lower expense factor with a letter from your CPA or tax preparer stating your actual expense ratio, or with a profit-and-loss statement. If your business genuinely runs at 20% expenses, qualifying at a 50% haircut leaves a lot of income on the table. This is one of the highest-leverage details in a bank statement loan, and it's exactly the kind of thing I look at before we pick a lender.
Not every deposit counts
Underwriters back out deposits that aren't earnings: transfers from your savings or another account you own, loan proceeds, tax refunds, the check from selling your boat. Large irregular deposits usually need an explanation. If your real revenue flows through the account cleanly and consistently, your analyzed income will land close to your average. If the account is a mix of everything, expect the counted figure to come in lower than the raw average — which is why this calculator is a ballpark, not a quote.
What this income number is used for
Once the lender settles on your qualifying monthly income, the rest of the file works much like any other mortgage: that income goes into a debt-to-income calculation against your monthly debts and the new housing payment. Want to see what a given income supports? Take the number from this page and plug it into the affordability calculator. Between the two, you'll walk into our conversation already knowing the shape of your deal.
Frequently asked questions
How do bank statement loans calculate my income?
Instead of tax returns, the lender reviews 12 or 24 months of your bank statements and averages the eligible deposits. With personal statements, most or all of the qualifying deposits typically count. With business statements, the lender applies an expense factor — a percentage haircut for the cost of running your business — before counting the rest as income. The exact method varies by lender and program.
What is an expense factor?
It's the share of your business deposits the lender assumes goes to business expenses. A common starting point is around 50%, but it can be higher or lower depending on your industry, and many lenders will use a different figure if your CPA prepares a letter or a profit-and-loss statement showing your actual expense ratio. A service business with low overhead may justify a smaller haircut than one with heavy costs.
Should I use 12 or 24 months of statements?
Twenty-four months gives the lender a longer, smoother picture, which helps if your income is seasonal or was climbing. Twelve months can work in your favor if your recent year was stronger than the one before it. Which option you're offered — and which serves you best — depends on the program and your deposit history, so it's worth comparing both.
Do all deposits count as income?
No. Lenders count deposits that look like business revenue or earnings. Transfers between your own accounts, loan proceeds, tax refunds, and one-off items are typically backed out. That's why the number you get here is a rough estimate — the underwriter's line-by-line review of your actual statements determines the real figure.
Is this estimate what I'll actually qualify with?
Treat it as a ballpark, not a promise. Every lender analyzes statements a little differently: which deposits count, what expense factor applies, and how they treat large or irregular items. The fastest way to get a real number is to let me run your actual statements through a lender's analysis — that costs you nothing.
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This calculator is for educational and estimation purposes only. It does not constitute a loan offer, pre-approval, or commitment to lend. Actual qualifying income is determined by the lender's line-by-line analysis of your statements, and expense factors, eligible deposits, and program guidelines vary.