Bank Statement Income Calculator

Q: How do lenders calculate income from bank statements?

They average your deposits over 12 to 24 months of statements, exclude obvious non-income items like transfers between your own accounts, and apply an expense factor to business accounts to approximate what the business keeps. The result is treated as your qualifying monthly income.

Q: What is an expense factor?

It is the share of business deposits assumed to go to operating expenses, commonly around 50%, though it varies by industry and program. Some lenders accept a CPA letter stating your actual expense ratio, which can qualify you on more of your deposits.

Q: Do bank statement loans require tax returns or W-2s?

No. That is the point of the program: no tax returns, no W-2s, and no pay stubs. You document income with bank statements instead, which fits business owners, 1099 earners, and investors whose returns are heavy with write-offs.

See the income your tax returns hide.

Avg monthly deposits$Expense factor%Debt-to-income target%Interest rate%Amortizationyrs

Est. qualifying monthly income

$15,000

From deposits, no tax returns

Business-account deposits are usually counted after an expense factor (often around 50%); personal-account programs and CPA letters can change the math. This is the income write-offs hide on a tax return.

Annual qualifying income$180,000

Max payment at 45% DTI$6,750

Est. loan that payment supports$1,014,576

See if I qualify

Inputs are pre-filled with example figures, edit them to match your deal. Estimates only, for planning purposes, and not a rate quote, an offer, or a commitment to lend. Your actual rate and terms depend on a full review of your deal.

Bank statement lenders qualify self-employed borrowers on deposits, not tax returns, so write-offs that shrink your taxable income do not shrink your buying power. The standard approach: average your monthly deposits over 12 to 24 months, apply an expense factor (often around 50% on business accounts), and treat the result as qualifying income. This calculator runs that math and shows the monthly payment and rough loan size that income supports.

Common questions

How do lenders calculate income from bank statements?

What is an expense factor?

Do bank statement loans require tax returns or W-2s?

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