Formulas and 2026 figures checked & updated: July 2026
50% is the common lender default
How to Use the Bank Statement Loan Calculator
- Enter your average monthly business deposits over the last 12 months.
- Enter your average monthly business deposits over the last 24 months, if different.
- Adjust the expense factor — 50% is the common lender default; lower it if a CPA letter documents a lower actual expense ratio.
- Compare the qualifying income under a 12-month vs. 24-month lookback.
What This Calculator Does
Non-QM bank statement loans qualify self-employed borrowers off actual bank deposits instead of net taxable income from a tax return — useful for high-write-off businesses whose Schedule C profit understates real cash flow.
This calculator applies the same expense-factor math a bank statement lender uses: deposits minus an assumed expense percentage equals usable qualifying income, shown for both a 12-month and a 24-month lookback so you can see which window helps more.
Formula
Qualifying Income = Average Monthly Deposits × (1 − Expense Factor)- Expense FactorAssumed % of deposits that represents business costs (default 50%)
Examples
Example: $22,000/month average deposits, 50% expense factor
Standard default expense factor.
Qualifying income = $11,000/month — often much higher than the same business's Schedule C net profit after write-offs.
Continue Your Financial Planning
Methodology
Qualifying monthly income = average monthly deposits × (1 − expense factor). The expense factor represents the assumed share of deposits that goes to business costs; most non-QM lenders default to 50% unless a CPA documents a lower actual ratio.
Frequently Asked Questions
Is 100% of my deposits counted as income?+
No. Lenders apply an expense factor — most commonly a flat 50% — before arriving at usable income, since a business has real costs behind its deposits. Only the remaining percentage after that factor counts toward your qualifying income.
Can I use a lower expense factor?+
Yes. If a licensed CPA or tax preparer provides a signed letter documenting that your business's actual expense ratio is lower than the default 50%, many non-QM lenders will use that lower figure instead, which increases your qualifying income.
12-month or 24-month lookback — which is better?+
A 12-month lookback uses a shorter, more recent window, which can help if your business has grown recently. A 24-month lookback smooths out seasonal or one-off spikes but pulls in an older, possibly weaker period — compare both here.
How does this compare to a conventional loan's qualifying income?+
Conventional loans qualify you on net taxable income from Schedule C, which is often far lower than your deposit-based figure here once write-offs are factored in. Use the self-employed income calculator to compare directly.
Can I save my results?+
Yes. Use “Save results” to store a snapshot. Without an account it remains in this browser. If you log in, saved scenarios sync securely to your SmartRates account so they are available on your other devices.
How do I share my calculation?+
Click “Share” in the toolbar to copy a link (or open your device’s share sheet). The link encodes your exact inputs, so whoever opens it sees the calculator pre-filled with the same numbers and the same result.
Can I email my calculator results?+
Yes. Click “Email results” to open your default email application with the current inputs, results, and calculator link already included. Review the message and choose the recipient before sending.
Can I export or print my results as a PDF?+
Yes. Click “Export PDF” to open a clean, printable summary of your inputs and results that you can save as a PDF or print. It includes a timestamp and a link back to the calculator.
How accurate are the calculator results?+
The arithmetic follows the formula and assumptions documented on this page. The result is still an estimate because actual rates, fees, taxes, timing conventions, eligibility rules, and provider calculations can differ. Use figures from your official quote, statement, contract, or tax form before making a financial decision.
Which inputs have the biggest effect on the result?+
Rate, time, starting balance, recurring payments or contributions, and fees usually have the largest effects. Change one input at a time to create a conservative, expected, and optimistic scenario instead of relying on a single forecast.
Are taxes, fees, and inflation included?+
Only when they appear as an input or are explicitly described in the methodology. Do not assume an omitted cost is zero. Review the formula and methodology sections to see exactly what is included before comparing the result with an outside quote.
Can this calculator predict future rates or returns?+
No. A calculator projects the assumptions entered; it cannot predict market returns, inflation, variable interest rates, tax-law changes, or provider decisions. Rerun the calculation with several assumptions to understand the range of possible outcomes.
Why might my lender, bank, broker, or tax software show a different result?+
Professional systems may use daily timing, transaction dates, compounding conventions, rounding rules, account-specific fees, credits, eligibility details, or regulations that a general-purpose calculator cannot know. A small difference can be rounding; a large difference usually means an assumption or included cost is different.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.