Bank statement loan calculator: qualify using your bank deposits, not your tax returns
Andes Mortgage’s Bank Statement Loan Calculator shows self-employed borrowers what their bank deposits qualify them for a mortgage — no tax returns, no W-2s or pay stubs needed.
We engineered this calculator using real life mortgage lending guidelines. Enter your average monthly deposits, choose personal or business statements, and see your qualifying monthly income instantly. Then we do the one thing most calculators don’t: we tell you exactly which factor is limiting you when it comes to acquiring a mortgage.
- Licensed in GA, FL, TX, SC & AL
- Investor lending in ~46 states
- No tax returns or W-2s
- Hablamos español
What the number actually means
The figure the calculator shows is a qualifying-income estimate — what a Non-QM bank statement loan lender will likely let you use as income, based on your deposits.
This is not a rate quote, a pre-approval, or a guarantee. Bank statement programs don’t publish rates the way conventional loans do, and your actual number depends on the lender your file lands with.
What this is: an honest, lender-logic estimate of how your deposits convert into income — the number that decides how much house you can qualify for. Use our proprietary Bank Statement Loan calculator to see whether a bank statement loan is worth a real conversation, and to understand which lever moves your number the most.
Why we show you the potential constraints
Most calculators hand you one number and stop. That’s the number that gets people stuck — they see a figure, it’s lower than they hoped, and they assume the door is closed. No explanation, no soft landing.
We’ve found that most self-employed borrowers actually qualify for a mortgage – they were just looking for the wrong program or got the wrong impression of one.
On a bank statement loan there are four things that can limit you: your expense factor (the lender’s assumption that it takes some money to run your business), the DTI cap, the credit-tier LTV ceiling, and your down payment. Only one of them is actually binding at a time. Naming which one — and only that one — is the difference between “I don’t qualify” and “here’s the single thing to change.” That’s what the calculator’s What’s limiting you panel does, and it’s the whole philosophy behind how we work.
The anchor — personal vs business statements, and the expense factor on a bank statement loan
This is the part almost nobody explains clearly, and it’s the thing that most changes your number.
A bank statement loan doesn’t count your deposits at 100%. It applies an expense factor — an assumption about how much of your revenue goes to running the business — and only the rest counts as income:
The factor depends on which statements you use:
- Personal statements: flat 50% expense factor**. Half of your deposits count. It's the simplest path — no CPA involved — and it's the market default.
- Business statements: can count more of your deposits. Instead of a flat 50%, the factor is set by your business's real margins — and with a CPA letter, it can drop as low as 10%, meaning up to 90% of your deposits count as income.
The biggest number isn't necessarily the best deal - it might just be the one to get you further.
We’d rather say this plainly than let you find out later: Non-QM produces the largest income figure by a wide margin, but it costs more in rate every month for as long as you hold the loan. If a Freddie or Fannie conventional loan structure gets you the house you actually want, that’s usually the better outcome even though the income is smaller.
Where Non-QM earns its keep is when the agencies simply can’t get you there — you’re under 62 with most of your wealth outside retirement accounts, you’re buying a rental, or you need cash out. Our job is to run all three and tell you which one wins your file, not to sell you the biggest number.
We explain everything on our full bank statement loan guide →
Worked example: Self-employed borrower with an average of $40,000 per month in deposits
|
Path
|
Expense Factor
|
Income Counted
|
Qualifying Income
|
|---|---|---|---|
|
Personal statements
|
50%
|
50%
|
$20,000/mo
|
|
Business bank statements (with documented 30% expense ratio)
|
30%
|
70%
|
$28,000/mo
|
|
Business bank statements (Using CPA letter, 10% expense ratio)
|
10%
|
90%
|
$36,000/mo
|
Same deposits. Up to $16,000 a month of difference in qualifying income — purely from which statements you use and what your CPA will document.
That’s why “which statement type should I use?” is the most valuable question on this page, and it’s exactly what the calculator surfaces when income is your tight constraint.
For lower expense ratios: A lower expense factor has to match what a CPA will actually sign and the nature of your business — you can’t just pick the smallest number. But if your business genuinely runs lean, that documentation is often the single biggest lever you have.
A bank statement loan can help you get a mortgage - when every other lender or bank told you couldn't.
Banks, credit unions and retail mortgage institutions only underwrite based on prime lending guidelines: W2s, pay stubs, tax returns. The moment your file doesn’t fit their box, you receive a denial letter – even though you know you can easily afford the mortgage and have a sizeable down payment.
If this is you, let’s talk. Book a call with us here or see if there’s another solution for you.
12 vs 24 months of bank statements - which is better?
24 months
Smooths out a seasonal or uneven business. If one big month or one slow quarter would skew a 12-month average, two years evens it out.
Sometimes, a 24 month average may provide you with better loan pricing.
12 months
Favors a borrower whose most recent year is stronger.
If your business grew and last year looks much better than the year before, a 12-month program lets that recent strength carry the average. Most bank statement loans fall under this category.
There’s no universal “better” — it depends on the shape of your income. The bank statement loan calculator lets you toggle between them so you can see which produces the higher, steadier number for your deposits. When it matters, we compare both on a call.
How deposits count on a bank statement loan
Here’s the trap that changes the number after people think they’ve got it figured out: not every deposit counts.
Lenders are counting business revenue. When they review your statements, they typically exclude:
– Transfers between your own accounts — moving money from savings to checking isn’t income.
– One-time lump sums — a tax refund, a loan, a gift, the sale of an asset, a large irregular deposit.
– Non-business income already counted elsewhere, or income that isn’t from the business the loan is based on.
Our Bank Statement Loan Calculator has a field to subtract non-qualifying deposits so your estimate reflects what will actually count, not just what hit the account.
What this bank statement loan calculator won't tell you
Your rate
Bank statement loan pricing isn’t published, and it moves with credit, LTV and the lender. The calculator deliberately doesn’t guess.
Which lender fits
Expense factors, LTV ceilings, and minimum-asset rules differ more between bank statement lenders than almost any other loan type. Matching your file to the right one is the whole game — and it’s what our tool, Mortgage Match does well.
Issue an approval
This bank statement loan calculator is a tool to help you understand what income might qualify based on your business-qualifying deposits. It is not however, an approval tool or underwriter’s approval.
Who is this for?
- Self-employed business owners who write off aggressively and show low net income on tax returns.
- 1099 contractors and consultants with strong, steady deposits
- Gig, freelance, and commission earners whose income is real but hard to document due to volatility and sources
Besides bank statement loans, there are other mortgages that are geared towards borrowers whose incomes are complex. Head over to Mortgage Match, our tool that lets you see what other options may be available for you.
Where to go next
How bank statement loans work
The full guide and everything explained in-depth.
Non-QM loans
Different options for income verification. Not a one-size fits all. Explore the full guide.
1099 income loans
Recently switched from W2 to 1099 or you are a 1099 contractor? This may be a great option for you.
How we built the numbers on this page
Andes Mortgage is a broker. We work from current wholesale lender guidelines across multiple Non-QM investors, and everything on this page is a synthesis of those documents — never a single lender’s program presented as a market rule.
- Expense factor: 50% is the standard default for personal statements. Business statements can reach a 10% floor with a CPA letter or a documented expense ratio. Both are confirmed against our active lender shelf.
- LTV, DTI, credit and down-payment figures are shown as typical ranges. Individual lenders set their own overlays, and they change without notice.
- Because bank statement programs vary so widely, we show ranges and name the binding constraint rather than asserting a single threshold as universal.
Last update: July 29, 2026.
Written by Marcos Zambrano, President of Andes Mortgage · NMLS #988935 · mortgage professional since 2013. Program terms and eligibility vary by lender and are subject to change without notice. Figures shown are typical market ranges as of the date above, not a commitment to lend. Andes Mortgage LLC, NMLS #2187991. Equal Housing Lender.
The questions people actually ask
How is your income calculated on a bank statement loan
Your qualifying income is your average monthly deposits multiplied by one minus the expense factor. On personal statements that factor is a flat 50%, so half your deposits count. On business statements the factor can be lower — as little as 10% with a CPA letter — so more of your deposits count as income. No tax returns are used.
Do I need tax returns to qualify?
No. That’s the entire point of the program. Instead of tax returns or W-2s, the lender qualifies you on 12 or 24 months of bank deposits. It’s designed for self-employed borrowers whose returns understate their real income.
What's the difference between using business and personal bank statements to qualify?
Personal statements use a flat 50% expense factor — simple, no CPA required. Business statements let the expense factor reflect your actual margins, and with a CPA letter or a documented profit-and-loss it can drop toward a 10% floor, counting far more of your deposits. On the same $40,000/month in deposits, that’s the difference between about $20,000 and $36,000 in qualifying income.
What deposits count and what gets excluded?
Lenders count business revenue. They typically exclude transfers between your own accounts, one-time lump sums like tax refunds or asset sales, and non-business income. A single unusually large deposit will need a written explanation before it can count.
What is an expense factor on a bank statement loan and how can I lower it?
The expense factor is the share of your deposits the lender assumes goes to business expenses — so only the rest counts as income. 50% is the default. You can lower it (counting more income) only on business statements, and only with a CPA letter or a documented expense ratio supporting the lower number.
Is a bank statement loan the same as a stated income loan?
No. Stated income loans let borrowers simply state income without documentation and largely disappeared after 2008. A bank statement loan is fully documented — the lender verifies real deposits across 12 or 24 months. The income is proven; it’s just proven with bank statements instead of tax returns.
What credit score do I need to qualify for a bank statement loan?
Programs generally start around a 640–660 credit score, with stronger credit unlocking higher loan-to-value.
Find out which loan fits your status in a few minutes
Answer a few quick questions and we’ll point you to the right path and the loans that fit — no credit pull, no obligation. Hablamos español.
Owner & mortgage broker, Andes Mortgage LLC · NMLS #988935
- Guidelines last verified: July 2026 · reviewed quarterly
Andes Mortgage provides mortgage guidance only, not immigration, legal, or tax advice. Figures shown are typical ranges from current wholesale lending guidelines as of the date above — not a single lender’s terms and not a commitment to lend. Program terms and eligibility vary by lender and are subject to change without notice. Andes Mortgage LLC · NMLS #2187991 · Equal Housing Lender.