Bank Statement Loan Calculator
Self-employed and buying a home? Estimate how much you could borrow on a bank-statement loan, based on your deposits, expense factor, and DTI.
Based on $10,000/mo qualifying income at a 45% DTI.
| Avg. monthly deposits | $20,000 |
| Qualifying income (annual) | $120,000 |
| Max total monthly debt (DTI) | $4,500 |
| Existing monthly debt | $500 |
| Max housing payment (P&I) | $4,000 |
A rough estimate — bank-statement programs vary widely by lender in expense factors, DTI limits, and how many months of statements they average. The housing payment here is principal and interest only; taxes, insurance, and HOA reduce the loan you'd qualify for. Not a lending decision.
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How this calculator works
Who this is for
Self-employed borrowers, freelancers, and business owners whose tax returns understate their real cash flow. Bank-statement loans let you qualify on the money actually flowing through your accounts instead of your taxable income.
How qualifying income works
The lender averages your monthly deposits over 12 to 24 months, then applies an expense factor — typically around 50% — to estimate your net income. If you deposit $20,000 a month and the expense factor is 50%, your qualifying income is $10,000 a month.
That income is then run through a debt-to-income limit: your total monthly debt (including the new mortgage) can't exceed a set percentage of income. Subtracting your existing debts leaves the housing payment you qualify for, which sets the maximum loan.
Caveats
Every lender's program is different — expense factors, DTI caps, minimum credit scores, and required reserves all vary, and a P&L or CPA letter can sometimes replace the flat expense factor. The payment here is principal and interest only; property tax, insurance, PMI, and HOA dues will lower the amount you actually qualify for. Treat this as a ballpark, not a pre-approval.
Frequently asked questions
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This site is for educational purposes only and does not constitute financial advice.