Bank statement income estimator
This estimator turns 12 or 24 months of deposits into an estimated monthly income figure, the way bank statement programs start their math. It is an estimate, not a qualification. The lender decides which deposits count and which expense factor applies, and every field here starts blank.
Choose the statement type, the review period and an expense factor, then enter your deposits. The estimate updates as you type.
How is bank statement income calculated?
Start with total deposits, remove the deposits that are not income, apply the expense factor, apply your ownership share if you own part of the business, then divide by the number of months reviewed. In one line: (total deposits minus non-income deposits) times (1 minus the expense factor) times your ownership share, divided by 12 or 24. The result is an estimated monthly income figure. A lender's version of this math can differ at every step, which is why the result here is an estimate.
Do lenders use 12 or 24 months of statements?
Both review periods exist, and which one you can use varies by lender, account type and business history. A 24-month average smooths out a slow season. A 12-month average reflects the most recent year, which helps when the business has grown and hurts when it has slowed. Run both in the estimator to see the difference for your deposits.
Business or personal statements: what changes?
Business statements show gross receipts, and gross receipts are not take-home income, so lenders apply an expense treatment to them. Personal statements can work when business income lands in that account and the source is clear. Whether a lender applies an expense factor to personal statements, and how much, varies by lender. Moving the same money from a business account to a personal account does not count twice; the transfer comes out.
What is an expense factor, and who sets it?
An expense factor is the share of eligible deposits the lender treats as business costs before it calls the rest income. The lender sets it. Some lenders use a standard figure by business type, and some let a tax preparer's letter or a profit and loss statement support a different figure. The factor choices in the estimator are there so you can see the range; none of them is a lender's figure for your file.
Which deposits do lenders remove?
Anything that is not recurring income. That usually means transfers between your own accounts, loan or credit-line proceeds, tax refunds, returned purchases, capital you put into the business, sale proceeds and one-time personal deposits. Large or unusual deposits need a paper trail. Under the federal ability-to-repay rule, the official interpretation says a creditor does not verify income just by seeing an unexplained deposit in an account; it has to confirm the deposit is income (12 CFR 1026.43(c)(4) and its commentary, read November 5, 2026). Cash deposits without records are hard to count for the same reason.
Is this how much I qualify for?
No. This is a monthly income estimate only. Qualifying also depends on your other debts, credit, assets, the property and the program. Bring the estimate to Dan as a starting point, along with complete statements, so he can run the file the way an underwriter will. The bank statement loan guide covers the full process, and the non-QM loan options page compares it with 1099, P&L and asset-based paths.
Frequently asked questions
Can I use both business and personal statements?
Some lenders allow it when income moves from the business account to the personal account, and some ask you to choose one. Either way, transfers between the two accounts are counted once. Programs vary by lender.
Why did my lender's number come out lower than my estimate?
The usual reasons are deposits the lender excluded, a higher expense factor, a partial ownership share or a declining trend in recent months. Ask the lender which deposits it removed and which factor it used.
Do I need a CPA letter for a bank statement loan?
Not always. Some lenders use their own expense factor with no letter, and some require a letter or a P&L to verify the business or to support a different factor. Requirements vary by lender.
Want Dan to review your statements?
Want a second look at your statements?
The estimator uses your figures. Dan can walk through the deposits, the exclusions and the expense treatment with you before you apply.
