Self-employed buyers often have healthy cash flow but tax returns that show a lower income after deductions. Bank statement loans estimate income from deposits instead. This bank statement loan calculator applies an expense factor to average monthly deposits to estimate qualifying income, then shows the payment and housing ratio for a home price. It's a good way to reach business owners who've been told they can't qualify.
Lenders average 12 or 24 months of business or personal deposits, then apply an expense factor, a percentage treated as business expenses, to estimate qualifying income. The factor depends on the business type and lender. This calculator uses the deposits and factor you enter to estimate income and the housing ratio.
Contractors, consultants, gig workers and small-business owners are a large buyer group often underserved by standard pre-qualification. A page for them with this calculator signals that you understand their situation.
If a conventional pre-qualification came back low because of deductions, a bank statement estimate helps the buyer see whether a different loan type might work, before they give up.
Investors with several properties and complex returns sometimes use bank statement loans. Pair it with DSCR to cover both alternative routes.
The buyer enters average monthly deposits, an expense factor, home price, down payment, rate, monthly taxes, insurance and HOA, and term. They see qualifying monthly income, the estimated housing payment (PITI), the housing DTI, the loan amount, average monthly deposits and principal and interest.
The lead you receiveYou'll see their Avg Monthly Deposits, the expense factor, Qualifying Monthly Income, Estimated Housing Payment (PITI), Housing DTI and Loan Amount. These buyers have often been turned away elsewhere, so a knowledgeable reply builds loyalty quickly.
Your deposits came out to about $11,900 a month in qualifying income with a 40% expense factor. That would support the payment on homes around $450,000. I know a couple of lenders who do bank statement loans well. Want an introduction?
The same figures your visitor sees arrive in your lead record. Here's how to read the ones that matter.
A low expense factor inflates income. Lenders use factors appropriate to the business. Encourage buyers to test conservative figures.
Transfers between the buyer's own accounts aren't income. Lenders exclude them, so buyers should exclude them from average deposits too.
Bank statement loans often have higher rates and larger down payment requirements than conventional loans. Make sure buyers hear this from a lender early.
Income Qualification
Loan Details
Field names are shown as they appear in the calculator's English interface.
Estimates only. Lenders calculate qualifying income from bank statements differently — expense factors, eligible deposits and the months reviewed all vary. Confirm with the lender.
Calculator results are estimates for illustration, not Loan Estimates, pre-approvals or offers of credit.
The share of deposits a lender treats as business expenses. If average deposits are $20,000 and the expense factor is 50%, qualifying income is $10,000 a month. Lenders set factors by business type, or use a CPA-prepared expense ratio.
Whatever their lender's program uses. Seasonal businesses may look better over 24 months. The calculator takes an average, so buyers should average the period their lender will review.
This one estimates income from deposits for bank statement loans. The self-employed income calculator averages two years of net profit from tax returns, the way conventional lenders typically do.
Usually self-employed borrowers with consistent deposits whose tax returns show lower income because of deductions. They're non-QM loans, with their own rules, pricing and down payment requirements.
These loans can cost more than conventional loans. Buyers should compare options with a lender and, if needed, a financial adviser. Your role is to explain what's available, not to recommend a loan.
Content and pages that address their situation directly, such as 'Buying a home when you're self-employed', with this calculator and the self-employed income calculator. Local business groups and referral partners help too.
The Brokerage plan, as one of the Real Estate & Pros tools. See pricing.
Yes. Set a conservative default in the calculator settings. Buyers can change it to match their business.
Yes. It runs in English and Spanish, useful for agents serving bilingual small-business owners.
Included on the Brokerage plan. Try it free for 14 days.