(Free calculator) Bank statement loan income · 12 & 24 months
Deposits in,
income out.
The quick math lenders use to turn a self-employed borrower's bank statements into qualifying monthly income. Type the totals for a fast estimate, or let DepositDesk read the statements and do every line for you.
(01) The formula
One line of math, many judgment calls.
Business: eligible deposits × ownership × (1 − expense factor) ÷ months
Personal: eligible deposits ÷ months
The arithmetic is easy. The work is deciding which deposits are eligible: going line by line through 12 or 24 statements, excluding transfers and refunds, sourcing large deposits, counting NSFs. That's the part DepositDesk does for you.
(02) Worked example
A $360,000 business file.
$360,000 eligible × 100% ownership × (1 − 50%) ÷ 12 = $15,000 a month
Same file with a CPA letter at 25%: $360,000 × 75% ÷ 12 = $22,500 a month
The expense factor is often the biggest lever, which is why lenders limit how low a letter can take it.
(03) Exclusions
What usually comes out.
- Transfers between the borrower's own accounts. Money moving from savings isn't income.
- Refunds, reversals and chargebacks. Returned money, not sales.
- Loan proceeds, tax refunds and other non-business income. Wage income on a co-mingled account is documented separately.
- Large or unusual deposits that fall outside the normal pattern, unless sourced. Several lenders draw the line at 50% of average monthly deposits.
(04) NSF and trend
Two things that can sink a file.
NSFs and overdrafts: lenders cap them over the last 12 months, often with a tighter cap if any happened in the last 3 months (for example 3 vs 5 at Newfi and Verus, 3 vs 6 at A&D, a flat 6 returned checks at Acra).
Declining deposits: a falling trend can force the lower recent figure (Acra and A&D) or make income ineligible (Newfi). DepositDesk shows the 12- and 24-month figures side by side and flags a decline.
(05) By lender
Six lenders, six rule sets.
| Lender | Published rule highlights |
|---|---|
| Angel Oak | 50% default; 70% some industries; letter to 15% |
| Newfi | 50% or letter to 10%; personal 100% |
| Acra | 50% fixed; 24 mo. uses lower of 12/24 |
| Deephaven | 50% or third-party statement; own 50%+ |
| Verus | 50% or letter to 10%; personal = business transfers only |
| A&D | 50% or letter/P&L to 10%; own 25%+ |
Pick a lender in the tool to apply its rules. Compare all lender rules → DepositDesk isn't affiliated with any lender.
(06) Banks
Statements from any bank.
Tested layouts: Chase, Bank of America, Wells Fargo, Mercury and credit unions. Scans and phone photos are read with OCR in your browser.
Investment property instead? Try the free DSCR calculator.
(07) FAQ
Questions brokers ask.
How is bank statement loan income calculated?+
Add up the eligible deposits for 12 or 24 months. For business statements, multiply by the borrower's ownership share and by one minus the expense factor, then divide by the number of months. For personal statements, most lenders count 100% of eligible deposits divided by the months.
What expense factor do lenders use?+
Many non-QM lenders default to 50% for business statements. A letter from a CPA or tax preparer can support a lower factor, down to a lender minimum (10% at several lenders, 15% at Angel Oak), and some industries are underwritten higher (70% at Angel Oak).
Which deposits are excluded?+
Transfers between the borrower's own accounts, refunds and reversals, loan proceeds, tax refunds and other non-business income are typically excluded. Large deposits outside the normal pattern must be sourced or excluded.
What counts as a large deposit?+
Several lenders define it as any deposit over 50% of the average monthly deposits or sales (Newfi, Verus, Deephaven). Others leave it to the underwriter.
12 months or 24 months?+
Both are common. Some lenders use the lower of the 12- and 24-month figures (Acra) or require the most recent lower figure when deposits decline (A&D).
Is this calculator free?+
The quick estimate on this page is free and stores nothing. The full DepositDesk tool reads the statements for you; your first file is free.
(Next step)
Let DepositDesk read the statements.
Drop in 12 or 24 months of PDFs: deposits found, exclusions flagged with reasons, lender rules applied, lender-ready PDF out. First file free.