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Qualifying Income

A bank statement loan calculator for non-QM lenders and the brokers who place those files

This calculator turns a self-employed borrower's average monthly deposits and an expense factor into qualifying monthly income, then sets the estimated PITI on their target home against it to show housing DTI. For non-QM originators it filters business owners whose tax returns understate cash flow, before anyone pulls statements.

Business owners rejected on tax-return income are searching for this answer; included on the Brokerage plan.

  • 7 inputs
  • 6 results
  • Included on the Brokerage plan
  • 6 languages
Start free on Originator What the numbers tell you about the borrower
Live calculator

This is the calculator your visitors use. Enter numbers to see it work.

Self-Employed Borrowers

Why does a self-employed borrower look for a bank statement calculator?

Usually after hearing no. Their tax returns show modest net income because they deduct aggressively, yet their accounts show steady deposits every month. A conventional pre-qual told them the house was out of reach.

They want to know whether their deposits tell a better story. With $18,000 a month in average deposits and a 50% expense factor, qualifying income comes to $9,000. On a $500,000 home with 20% down at 7.5% over 30 years, plus $700 a month for taxes, insurance and HOA, the housing payment is about $3,497, a housing ratio near 39%. Their worry is whether non-QM pricing and a larger down payment are worth it, and what documents they will need.

How does a non-QM originator use this calculator to pre-screen?

Put it in front of the self-employed traffic you already attract: contractors, realtors, rideshare and trucking owner-operators, consultants and small retailers. It is part of the Qualifying Income tools, available on the Brokerage plan.

The lead arrives with average deposits, the expense factor they assumed, home price, down payment, rate, monthly taxes and insurance, and the resulting housing DTI. That is enough to judge fit before you request 12 or 24 months of statements. A borrower who entered a 50% factor but runs a low-overhead service business may qualify on a lower factor with a CPA letter or a profit-and-loss statement, which changes the whole picture.

Pair it with the self-employed income calculator so borrowers can compare tax-return income with deposit-based income and see which route is stronger. Explain the bank statement loan trade-offs plainly: higher rates and down payments in exchange for flexibility.

  • First question: 12 or 24 months of statements, personal or business account?
  • Second: large one-time deposits that will need a paper trail.

What arrives in your CRM

What the numbers tell you about the borrower

  • Average Monthly DepositsThe headline number, but ask whether it includes transfers between accounts, loan proceeds or refunds. Lenders typically exclude those, so qualifying deposits are often lower than what the borrower entered from a quick glance at statements.
  • Expense Factor (%)If they left the 50% default, they probably have not spoken with a non-QM lender yet. A lower figure suggests they know their business type or have a CPA letter, which signals a more prepared borrower.
  • Housing DTIThis ratio excludes other debts, so total DTI will be higher. A housing figure already near 40% leaves little room for car notes or business credit lines that report personally; ask about them early.
  • Down PaymentNon-QM programs often require more down than conventional loans. A borrower entering 20% or more is generally in range; one entering 5% may need to hear about program minimums before you go further.

A first message that uses their numbers

What should you say first to a bank statement lead?

Hi, this is [Name] at [Company], NMLS [ID]. I saw your bank statement income estimate on our site. Lenders treat deposits and expense factors differently, so a few quick questions about your business type and accounts would tell us whether this route works better than tax-return income. Good time to talk this week?

Explain that non-QM loans usually carry higher rates and down payments, avoid implying approval from deposits alone, and contact only within the consent given.

Where this calculator earns its place

  1. 01

    Self-employed or non-QM landing page

    Business owners searching for alternatives to tax-return income want to test their numbers before calling anyone.

  2. 02

    Referral partner pages for CPAs and bookkeepers

    Advisers can send clients a tool that explains why deposits may support a larger loan than their returns suggest.

  3. 03

    Spanish-language small business outreach

    The calculator runs in Spanish, and many self-employed borrowers prefer to work through income questions in their first language.

Limits worth knowing

  • Lenders choose which deposits count, and transfers, loan proceeds and unexplained large deposits are often excluded.
  • The expense factor varies by business type and lender; the result shifts sharply with small changes in that input.
  • Housing DTI ignores other debts, so total DTI, which lenders also check, will be higher.

Calculator disclaimer: Estimates only. Lenders calculate qualifying income from bank statements differently — expense factors, eligible deposits and the months reviewed all vary. Confirm with the lender.

Definitions in the calculator

Bank statement loan
A mortgage for self-employed borrowers that documents income with 12 or 24 months of bank statements instead of tax returns. It is a non-QM product, so rates and down payment requirements are often higher than on conventional loans. This calculator estimates qualifying income from deposits and the housing ratio it supports.
Qualifying income
The monthly income a lender uses to underwrite the loan: average monthly deposits minus the expense factor. With $18,000 in deposits and a 50% factor, qualifying income is $9,000. Lenders may exclude transfers, loan proceeds and other non-business deposits before averaging.
Expense factor
The percentage of deposits a lender assumes goes to business expenses, subtracted to estimate income. Lenders set it by business type and may accept a lower figure with a letter from a CPA or a profit-and-loss statement. A lower expense factor raises qualifying income in this calculator.
Average monthly deposits
Total eligible deposits over the statement period divided by the number of months. Using 12 or 24 months smooths out seasonal or irregular income. Large one-time deposits usually need a paper trail, and the lender may leave them out of the average.
Debt-to-income ratio (DTI)
Monthly debt payments divided by gross monthly income. This calculator shows the housing ratio: the PITI payment divided by qualifying income. Lenders also check the total ratio including other debts. A 43% total ratio is a common guideline (CFPB) for qualified mortgages, and non-QM lenders set their own limits.
PITI
Principal, interest, taxes and insurance: the four parts of a typical monthly mortgage payment. Here it is principal and interest plus the monthly taxes, insurance and HOA figure you enter. It is the housing payment lenders divide by qualifying income to get the housing DTI.
Non-QM loan
A mortgage that does not meet the federal qualified mortgage standards, often because income is documented in nontraditional ways. It is legal and regulated, but it is not eligible for sale to Fannie Mae or Freddie Mac, so terms vary more between lenders. Bank statement loans are a common type.
Down payment
The cash paid toward the purchase price at closing; the loan covers the rest. In this calculator the loan amount is the home price minus the down payment. Non-QM lenders often require a larger down payment than conventional programs, and a bigger one lowers both the payment and the housing DTI.
Interest rate
The annual percentage the lender charges on the unpaid balance, before fees. This calculator divides it by 12 to get the principal-and-interest payment. Non-QM rates are usually higher than conventional rates for the same borrower, which raises the payment and the housing DTI.

Terms on this page

Pairs well with

Self-Employed Income Calculator

Self-employed borrowers rarely know their qualifying income; the ones who calculate it first make far better leads. Available on Brokerage.

Debt-to-Income Calculator

Three inputs, two ratios and an honest assessment, so the first thing you know about a lead is whether the numbers work.

Affordability Calculator

Buyers type in what they earn and owe; you get a lead that already knows its price ceiling and which ratio set it.

FAQ · 8 questions

Questions about this calculator

How does a bank statement loan calculate qualifying income?

It starts from average monthly deposits over 12 or 24 months of statements and subtracts an expense factor representing business costs. With $18,000 in average deposits and a 50% factor, qualifying income is $9,000 a month. Lenders may first remove transfers, loan proceeds and other non-business deposits, so their figure can be lower than yours.

What expense factor should I use?

Start with the default 50%, a common figure for sole proprietors, then adjust once you know your lender's rules. Lenders set factors by business type and may accept a lower one with a CPA letter or a profit-and-loss statement. Dropping from 50% to 30% on $18,000 of deposits lifts qualifying income from $9,000 to $12,600.

What housing DTI does a bank statement loan allow?

There is no single limit. Bank statement loans are non-QM, so each lender sets its own ratios and also checks total DTI including other debts. The calculator shows housing DTI only: PITI divided by qualifying income. Use it to see whether the house alone is reasonable, then discuss total debts with a loan officer.

Why are bank statement loan rates usually higher?

Because the loans are not eligible for sale to Fannie Mae or Freddie Mac and income is documented in a nontraditional way, so lenders price for more risk. Expect higher rates and larger down payments than on comparable conventional loans. Enter a realistic non-QM rate in the calculator rather than a conventional rate you have seen advertised.

Which plan includes the bank statement loan calculator?

It is one of the Qualifying Income tools for self-employed borrowers, included on the Brokerage plan. The Originator and Producer plans cover the Mortgage & Home Loans and Loans & Amortization calculators. See pricing for current plan details, limits and the 14-day free trial on monthly and yearly billing.

What does a bank statement lead tell me that a payment lead does not?

It identifies the borrower as self-employed and shows how they think about their own cash flow. You see deposits, the expense factor they chose, target price, down payment and housing DTI. That lets you judge fit for non-QM and decide what to request first, rather than discovering self-employment halfway through a conventional pre-qual.

How should I route self-employed leads in HighLevel?

Send this calculator's leads to a dedicated workflow with a per-calculator webhook, available on the Producer and Brokerage plans. Tag them as non-QM, assign them to the originator who handles alternative documentation and send a short checklist of statement months and account types. If the webhook fails, the lead remains in the CRM.

Is a bank statement estimate enough to issue a pre-qualification?

No. It is an estimate from numbers the borrower typed. A pre-qualification still needs a conversation about deposits, business type, debts and assets, and anything firmer needs statements reviewed under the lender's rules. Use the calculator result to decide which questions to ask, and keep the borrower clear that only a lender can confirm qualifying income.

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