Mortgage Bank Statement Calculator

Bank statement loans qualify self-employed using deposit averages instead of tax returns.

Avg monthly deposits

Expense factor %

Months of statements

Personal monthly deposits

Monthly qualifying income

$12,500

Annual qualifying income

$150,000

Net monthly deposits

$12,500

How the math works

Net business income = deposits × (1 − expense factor). Total = business net + personal.

$25k × 50% = $12,500/mo business net + $0 = $150,000 annual qualifying income.

How to Use

Enter avg monthly deposits.
Enter expense factor %.
Enter months of statements.
Enter personal monthly deposits.
Read monthly qualifying income.

Frequently Asked Questions

Bank statement qualification?

12 or 24 months business or personal bank statements. Qualifying income = deposits × business expense factor (50–60% net for service business, 30–50% for retail/restaurant). Some lenders use "deposit × 100%" if borrower can prove low overhead. Eligible: independent contractors, small biz owners, gig workers, real estate investors. Rate: 1.5–3.5% premium vs conventional. Down: 10–25%. Reserve: 6–12 months PITI. Requires accountant letter or tax returns sometimes for business expense factor.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.