Bank Statement Income Calculator
Estimate the qualifying income a bank statement loan would assign to you — no tax returns required.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
Deposits vs Qualifying Income
Lenders average your business or personal deposits and apply an expense factor (often 50%) to estimate net qualifying income. No tax returns required. Estimate only.
Bank statement loans let self-employed borrowers qualify on deposits instead of tax returns. The lender averages 12 or 24 months of statements and applies an expense factor to estimate your net income.
This is powerful for business owners whose tax returns show low net income after write-offs. The qualifying figure here is what the lender would likely use in its debt-to-income calculation.
These figures are estimates. For neutral, official guidance on mortgage costs and what lenders can charge, see the CFPB's Owning a Home guide.
How to Use This Calculator
- 1
Enter the total deposits across your statement period.
- 2
Enter how many months of statements you will provide — usually 12 or 24.
- 3
Set the expense factor; lenders often use 50%, but a CPA letter can sometimes lower it.
- 4
Read the qualifying monthly and annual income the loan would assign.
The Formula & Assumptions
Avg deposits = total ÷ months
Qualifying income =
avg deposits × (1 − expense %)
Annual = qualifying monthly × 12
Lenders total the eligible deposits over your statement period and divide to find a monthly average, excluding transfers and one-time non-business deposits.
An expense factor reduces that average to approximate net income. A 50% factor is common, but a CPA or tax-preparer letter documenting a lower expense ratio can raise your qualifying income.
Personal versus business statements are treated differently — business accounts usually carry a higher expense factor. The exact method varies by lender, so treat this as a planning estimate.
Frequently Asked Questions
How do bank statement loans calculate income?
The lender averages your deposits over 12 or 24 months and applies an expense factor to estimate net income. That qualifying income then drives your debt-to-income ratio, with no tax returns required.
What expense factor will the lender use?
A 50% expense factor is common, meaning half your deposits are treated as business costs. A CPA or tax preparer letter documenting a lower actual expense ratio can sometimes reduce the factor and raise your qualifying income.
Who should use a bank statement loan?
Self-employed borrowers, business owners, and 1099 contractors whose tax returns understate their cash flow after deductions. The deposits often support a larger loan than the tax-return income would.
Are bank statement loan rates higher?
Yes, somewhat. Because they are non-QM products with alternative documentation, rates run above conventional loans. The trade-off is qualifying on real cash flow rather than written-down taxable income.
Ready to Turn Your Estimate Into a Real Pre-Approval?
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Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.
It estimates the qualifying income a bank-statement lender will use by averaging deposits across 12 or 24 months of statements. It fits self-employed borrowers without traditional pay stubs.
Bank Statement Income Calculator in Florida
Florida's economy is full of self-employed entrepreneurs, gig workers, and seasonal business owners whose tax returns do not reflect their true income. Bank-statement loans are a common solution across the state, letting these borrowers qualify on deposits rather than adjusted gross income.
How the Bank Statement Income Calculator Works
The calculator totals your business or personal deposits over the chosen period, applies an expense factor to approximate net income, and divides by the number of months to produce a monthly qualifying income.
The Bank Statement Income Formula, Explained
Qualifying income = (total deposits × (1 − expense factor)) / months
Bank-statement loans suit borrowers whose tax returns understate their real cash flow due to deductions. Lenders apply an expense factor, often around 50% for business accounts, to estimate net income from gross deposits.
Personal-account programs may use a lower or no expense factor. The calculator lets you adjust the factor and the period (typically 12 or 24 months) to match the program you are applying for.
The Complete Bank Statement Income Calculator Guide
Bank-statement loans exist because tax returns are a poor measure of a self-employed borrower's ability to pay. Aggressive but legitimate deductions can slash taxable income, leaving a profitable business owner looking unqualified on paper.
These programs solve that by averaging actual deposits over 12 or 24 months and applying an expense factor to approximate net income. The result is usually a far higher qualifying figure than a tax return would produce.
The trade-off is documentation discipline: lenders want clean, consistent statements, and large irregular deposits may be excluded or questioned. Use the calculator to estimate your number, then organize your statements before you apply.
Bank Statement Income Calculator FAQ
How many months of statements do I need?
Most bank-statement programs use 12 or 24 months. A longer period can smooth out seasonal swings, which helps if your business income is uneven across the year.
What is the expense factor?
It is the share of deposits the lender assumes goes to business expenses, often around 50% for business accounts. The remainder is treated as qualifying income.