Bank Statement Loan Pricing Calculator

Bank statement loans let self-employed borrowers qualify on deposits.

Avg monthly deposits

Expense factor %

Loan amount

Rate premium vs QM %

QM rate %

Qualifying income (annual)

$150,000

Non-QM rate

0.09%

Monthly payment

$3,845

How the math works

Qualifying = deposits × (1 − expense factor) × 12. Non-QM rate = QM + premium.

$25k × 50% × 12 = $150k income. 6.5% + 2% = 8.5% rate. $500k at 8.5% = $3,845 monthly payment.

How to Use

Enter avg monthly deposits.
Enter deposit expense factor %.
Enter qualifying income calculation.
Enter loan amount.
Enter rate premium vs QM %.
Read qualification + pricing.

Frequently Asked Questions

How do bank statement loans work?

Borrower provides 12 or 24 months of business bank statements. Lender totals gross deposits. Applies expense factor (typically 50% of deposits for service business, 10-30% for product business). Qualifying income = deposits × (1 − expense factor). DTI calculated against qualifying income. Rate: 150-350 bps above QM. LTV: up to 85%.

Typical borrowers?

Self-employed (1099). Small business owners. Real estate investors. Gig workers. Independent contractors. Medical professionals. Creatives. Anyone with non-W-2 income who's profitable but tax-minimized. Lender looks at actual cash flow vs tax return. Tax-aggressive self-employed with $200k W-2 equivalent income often look worse on tax return — bank statement shows truth.

Expense factor logic?

Service business (consulting, legal): 50% expense factor (high labor, low material). Manufacturing/products: 25-40% (materials cost). Real estate: 30-45% (material but high margin). Medical: 40-55% (high overhead). Factor negotiable based on business type. Experienced loan officer crucial — matches you with right lender.

Documentation required?

12-24 months business bank statements. Profit & Loss (CPA-prepared or self-prepared). Business license. 2 years tax returns (self and business). Proof of 2+ years self-employment. Letter from CPA. Property details. Reserves (6-12 months). Down payment source. Bank statement loans require MORE documentation than W-2 loans, not less. But qualify more profiles.