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Bank statement loan income calculator
Estimate qualifying monthly income for a bank statement loan from 12 or 24 months of personal or business statements. Enter each month’s deposits and exclusions, set the expense factor and ownership, and see the large deposits, trend and NSF counts an underwriter would ask about.
The share of deposits treated as business expenses. Under 50% usually needs a CPA letter.
Most programs need at least 25% to use business statements.
Month by month · oldest first, amounts in USD
Paste a column from a spreadsheet into any cell
| Month | Deposits | Excluded | Largest | NSF | Eligible |
|---|---|---|---|---|---|
| Month 1 | · | ||||
| Month 2 | · | ||||
| Month 3 | · | ||||
| Month 4 | · | ||||
| Month 5 | · | ||||
| Month 6 | · | ||||
| Month 7 | · | ||||
| Month 8 | · | ||||
| Month 9 | · | ||||
| Month 10 | · | ||||
| Month 11 | · | ||||
| Month 12 | · | ||||
| Total | $0 | $0 | 0 | $0 |
Estimated qualifying income
$0/ month
$0 a year, from 12 months of business statements
- Total deposits
- $0.00
- Less excluded
- − $0.00
- Eligible deposits
- $0.00
- Average over 12 months
- $0.00
- After 50% expense factor
- × 50%
- Qualifying monthly income
- $0.00
Last 6 vs prior 6
Fill every month to see the trend.
Large-deposit line
·
No single deposit above it
Type or paste each month’s deposits, or load the example to see how it works.
An estimate from the figures you typed, using the method published non-QM guidelines describe. Each lender’s rules differ. This is not a loan offer, a pre-approval or financial advice. Nothing leaves your browser.
Eligible deposits by month
The method
How bank statement loan income is calculated
Bank statement programs let self-employed borrowers qualify on deposits instead of tax returns. The published guidelines we read all reduce to the same arithmetic, applied to the months of statements the lender asks for.
Eligible deposits
total less exclusions
(1 − expense factor)
business only, often 50%
Ownership %
business only
12 or 24
months of statements
Qualifying monthly income
what the lender uses for DTI
The expense factor stands in for the costs a tax return would have shown, which is why personal statements usually skip it. The result feeds the lender’s debt-to-income calculation, which this page does not do.
Worked example
A contractor with 12 months of business statements
Made-up figures for a borrower who owns 80% of a small renovation company. Every line follows from the one above it.
- Total deposits, 12 months
- $264,000
- Less a $10,000 transfer from savings
- − $10,000
- Less a $6,000 equipment loan advance
- − $6,000
- Less $2,000 of supplier refunds
- − $2,000
- Eligible deposits
- $246,000
- After a 50% expense factor
- $123,000
- At 80% ownership
- $98,400
- Divided by 12 months
- $8,200 / month
Now suppose June included a single $9,500 deposit. Against a lender that sets the line at 50% of qualifying income, that is anything above $4,100, so the borrower would be asked to explain it. Against a lender that uses 50% of average monthly deposits ($20,500), the line is $10,250 and the same deposit passes without a question. Same statements, different rule: the calculator lets you switch between the two.
Exclusions
What is excluded from eligible deposits
Underwriters scrub the deposits before any arithmetic. Anything that is not money the business earned comes out, and an error here moves the result more than the expense factor does.
Transfers between your accounts
Money moved from savings, another business account or a personal account is not new revenue.
Loan and credit line proceeds
An equipment loan advance or a draw on a line of credit is borrowed money, not income.
Refunds and reversals
Vendor refunds, card refunds, chargebacks reversed and IRS refunds come back out.
Income from another source
On personal statements: wages, benefits, rent or a partner’s pay going into the same account.
Choosing the statements
Personal vs business statements, 12 vs 24 months
Gross deposits into the business account, less exclusions, then the expense factor and your ownership share. Most programs ask for at least 25% ownership. Transfers in from your other business accounts need evidence they are business money.
Usually 100% of eligible deposits, with no expense factor, as long as two or three months of business statements show the money coming from a separate business account. Without that, lenders treat the account as commingled and apply a business expense factor.
Your most recent year, divided by 12. It favors a business that is growing, and lenders compare the last six months with the six before to see whether it is.
Two years divided by 24. It evens out a slow season, but the older year pulls the average toward it. Not every lender offers it.
Before you apply
Red flags underwriters look for
These are the checks the calculator runs on your figures. Each one is a question you would rather answer before the lender asks it.
Large deposits
A single deposit above the lender’s threshold needs a letter of explanation. Unsourced, it is usually removed from eligible deposits.
A declining trend
One published guideline allows up to a 10% drop over 6 months on 12 months of statements, and treats a year-over-year drop above 10% on 24 months as ineligible.
NSF and overdraft instances
Limits we read run from 3 in 12 months to 6 in 24, with instances in the most recent two months counted more strictly.
Ownership and expense factor
Under 25% ownership usually rules out business statements, and a factor under 50% needs a third-party letter to back it.
Getting the monthly totals out of PDFs
The monthly deposit total is printed on most statements. Picking out exclusions means reading every credit line. The bank statement converter turns each statement into rows in Excel or CSV, with every row checked against the running balance (see reconciliation), so a dropped deposit does not quietly lower the total. To spot-check rows you already have, the running balance checker finds the first row where the arithmetic breaks.
What this estimate does not cover
Lenders’ rules differ, and the lender’s own worksheet is the one that counts. The method here follows two public guidelines: the EPM Non-QM Program Guide (version 10) and the NDM NonQM Underwriting Guidelines (June 2026).
Your figures stay in this browser tab.
FAQ
Bank statement loan income questions
How do lenders calculate income from bank statements?
They total 12 or 24 months of deposits, remove what is not business income and divide by the months. Business statements also take off an expense factor, commonly 50%, and apply the ownership share. Personal statements usually count 100% of eligible deposits.
What expense factor do bank statement lenders use?
A fixed 50% is the usual default for business statements. A lower factor normally needs a CPA or licensed tax preparer letter stating the actual expense ratio, with a floor of 10% in the guidelines we read. Some lenders set lower fixed factors for one-person service businesses.
What counts as a large deposit on a bank statement loan?
It depends on the lender. Some define it as a single deposit above 50% of the monthly qualifying income; others use 50% of the average monthly deposits. A large deposit needs a letter of explanation, and one that cannot be explained or sourced is usually removed from eligible deposits.
Are transfers between my own accounts counted as income?
No. Transfers between your own personal accounts, or into a business account from a personal one, are excluded. The exception is personal statements: transfers in from your documented business account are what the income is built from.
Do Fannie Mae or Freddie Mac offer bank statement loans?
Not as a bank statement program. Fannie Mae’s Selling Guide documents self-employed income with tax returns and a cash flow analysis. Bank statement loans are non-QM products, so each lender or investor writes its own guideline, which is why the figures differ between them.
Is 12 or 24 months of statements better?
Twelve months helps a growing business; 24 smooths out an uneven year but carries the older year with it. With 24 months entered, the calculator also shows the most recent 12 alone.
Is the result a loan approval or a rate quote?
No. It estimates qualifying income from the figures you type. It does not check credit, debt-to-income, reserves or the property, and it is not a loan offer, a pre-approval or financial advice.
Does anything I type get uploaded?
No. The calculator runs in your browser. The figures are not sent to VouchRow or anyone else, and they are gone when you close or reload the page.
Reviewing applicant statements every week?
VouchRow turns statement PDFs into checked transaction rows you can total in your own income worksheet, with every row traced to its page.