Free educational tool
Bank Statement Income Calculator
The one question every self-employed borrower asks: what income will a lender actually credit me with? This tool gives you a plain-English estimate from your deposits — no signup, no credit pull, no sales call required.
Estimate your qualifying income
Fill in what you know. The estimate updates as you type.
Most programs review either 12 or 24 months of bank statements.
Add up every qualifying deposit across all of your statements, then enter the total.
Your structure can affect which deposits count. Your lender confirms this.
The expense factor is the share of deposits treated as business costs. Your lender determines the actual factor from your business type and documentation.
Your estimate
Enter your deposits on the left and your estimated qualifying monthly income will appear here.
Estimate for educational purposes only — not a qualification, approval, or loan offer. This tool does not calculate a rate, loan amount, or payment. Your actual qualifying income is determined by the lender’s underwriting based on your documentation.
How the math works
Traditional mortgage underwriting reads the income on your tax returns and W-2s. For self-employed borrowers, that number is often much smaller than the cash your business actually generates, because healthy write-offs lower your taxable income. A bank-statement program takes a different approach: instead of your tax returns, it reads the real deposits flowing through your bank accounts.
The estimate is built in four plain steps:
- Add up your eligible deposits across the statements you provide — either 12 or 24 months.
- Divide by the number of months to find your average monthly deposits.
- Apply an expense factor — a percentage set aside for the cost of running your business — so the program counts your net cash flow rather than gross deposits. A standard expense factor is 50%; low-overhead service businesses are sometimes credited with a lower factor, such as 30%.
- Read the remainder — what is left is your estimated qualifying monthly income.
In short: average monthly deposits × (100% − expense factor) = estimated qualifying monthly income. The lender determines the actual expense factor and which deposits are eligible, so treat this as a starting point for a conversation, not a promise.
A worked example
Suppose a business owner deposits $600,000 across 12 months of bank statements.
Average monthly deposits: $600,000 ÷ 12 = $50,000 per month.
Applying a standard 50% expense factor: $50,000 × 50% =
Estimated qualifying monthly income: $25,000 per month.
Change any input and the picture changes. If those same statements covered 24 months instead, or the deposits qualified for a lower expense factor, the estimated income would move accordingly. That is exactly what the calculator above lets you try.
Remember: credit profile, down payment, and the property still matter, and terms vary from borrower to borrower. The fastest way to turn an estimate into a real answer is to talk it through with Scott — no documents and no credit pull to get started.
Ready to see your real number?
Share a few details and Scott follows up personally to talk through your options — a no-obligation snapshot, no documents and no credit pull here.