Calculators · Bank Statement
Estimate your qualifying income.
Enter your average monthly deposits and adjust the expense factor to see an estimated qualifying income for a bank-statement mortgage. Runs entirely in your browser.
How is qualifying income calculated on a bank statement loan?
A bank-statement lender averages your eligible deposits over 12 or 24 months of statements, then applies an expense factor — the share of deposits treated as business cost rather than income — to arrive at your qualifying monthly income. There's no single industry-standard expense factor: it varies by lender and by whether the statements are personal or business accounts, so treat any percentage as a starting point to test, not a fixed rule.
Bank Statement Income Calculator
Estimate the monthly income a bank-statement lender might use to qualify you.
The expense factor is the share of your deposits an underwriter treats as business expense rather than income. There is no single industry number — it varies by lender and by whether the statements are personal or business accounts. 50% is a common starting point to explore with, not a rule. Move the slider to see how it changes your qualifying income.
This runs entirely in your browser — nothing you enter here is sent, saved, or shared anywhere. It’s a planning estimate, not a pre-qualification, an approval, or a commitment to lend. The expense factor and the deposits an underwriter counts as eligible both vary by lender and by your actual statements — your real qualifying income depends on the full file.
Why the expense factor matters more than the deposit total.
A bank-statement mortgage exists for self-employed borrowers whose tax returns understate what they actually earn. Instead of a W-2 or a 1040, the lender looks at what actually moved through your bank accounts and averages it into a monthly income figure.
The step most people don’t expect is the expense factor — the percentage of those deposits an underwriter assumes went to business costs rather than your pocket. It is genuinely different lender to lender, and personal accounts are usually treated more favorably than business accounts. That’s why this calculator makes the factor a slider instead of a fixed assumption: move it and watch your estimated qualifying income change in real time. If you’re also considering a 1099 income mortgage or want the full menu of documentation options, see the non-QM loan programs hub.
Bank statement income questions, answered.
How do you calculate income for a bank statement loan?
An underwriter totals your eligible deposits over the statement window (usually 12 or 24 months), averages them to a monthly figure, then applies an expense factor — the share treated as business expense rather than income — to arrive at your qualifying income. This calculator does the same math with numbers you enter, and lets you move the expense factor to see how it changes the result.
What is an expense factor and who sets it?
The expense factor is the percentage of your average deposits an underwriter subtracts as assumed business cost before counting the rest as income. It is not a single fixed number — it varies by lender and by whether the statements are personal or business accounts. Personal-account programs commonly count a higher share of deposits as income; business-account programs typically apply a larger expense factor.
Should I use 12 or 24 months of statements?
A 24-month window can smooth out a seasonal or uneven business, since it averages more history. A 12-month window is faster to document. Which one qualifies you for more usually depends on whether your recent deposits are stronger or weaker than your longer-term average — a broker can tell you which window presents your income best.
Do I need tax returns for a bank statement loan?
No — that's the point of this loan type. It documents income through your actual bank deposits instead of tax returns or W-2s, which helps self-employed borrowers whose returns understate their real cash flow because of business write-offs.
Is my deposit information saved when I use this calculator?
No. Everything you enter stays in your browser and is used only to compute the estimate on screen. Nothing is transmitted, logged, or stored anywhere.
Is this number a guaranteed qualifying income?
No. This is a planning estimate only — not a pre-qualification, an approval, or a commitment to lend. The exact deposits an underwriter counts as eligible, and the expense factor applied, vary by lender and by your actual statements. Your real qualifying income depends on the full file.
Ready to see your real number?
Send us your statements and owner Esther Buede will run the actual math and shop the lenders whose expense-factor treatment works best for you.