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
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.
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?
Get a personalized rate quote and pre-approval from a licensed Florida mortgage broker — no obligation.
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.