Bank Statement Income Calculator FAQ

It estimates the qualifying income a bank-statement lender will use by averaging deposits across 12 or 24 months of statements, for self-employed borrowers without traditional pay stubs.

The Complete 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.

How the 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.