A bank statement loan qualifies self-employed borrowers using deposits instead of tax returns. Qualifying income is estimated by averaging eligible deposits over 12 or 24 months, then applying an expense factor (often 50%) to approximate net income. This calculator gives you that figure instantly.
How bank statement loan income works
Lenders total the qualifying deposits across the statement period, divide by the number of months to get an average monthly deposit, then multiply by an expense factor (the portion counted as income). A 50% expense factor means half of average deposits count as qualifying income.
12-month vs 24-month statements
A 24-month average smooths out seasonal swings and is often required for newer businesses, while a 12-month program can qualify borrowers with a strong recent year. Use the months input to compare both scenarios.
Totalling deposits the fast way
The hardest part of a bank statement loan is adding up eligible deposits and excluding transfers, refunds, and one-off items. Converting the borrower's PDF statements to Excel or CSV lets you sum and filter deposits in seconds instead of keying each line by hand.