How Income is Derived

Estimating qualifying income should not require guesswork or back-of-the-napkin math. This bank statement home loan calculator is built to help you translate real deposit activity into a usable monthly income figure. You can quickly see how consistent deposits over time may be averaged and how income is typically viewed when tax returns are not part of the equation. The goal here is clarity. You enter numbers that already exist in your bank statements and the calculator does the rest, giving you a realistic starting point before speaking with a lender.

If your income changes month to month, a simple paycheck calculator is rarely helpful. This tool focuses on patterns instead of single data points, which is why many borrowers use it alongside broader planning for self-employed non-QM mortgage scenarios. By testing different deposit averages, you can see how income stability affects qualifying figures without committing to an application. That flexibility allows you to plan timing, savings, and next steps with more confidence and fewer assumptions.

Income calculation is only useful when it reflects real local housing price ranges. Once you have an estimated monthly figure, it becomes easier to connect that number to home prices in your target area. Many borrowers use this calculator before reviewing program options tied to Colorado bank statement home loans, including city-specific list prices in Denver, Boulder, and Colorado Springs. When income estimates and local market data line up, the path forward becomes clearer and far less stressful.

Bank Statement Loan Calculator

calculator

Your Income Calculation

30%
Your Estimated Monthly Income: $0

Use this tool to estimate your qualifying income based on your total deposits and expense factor. Slide green button left or right for your expenses. Check your professions typical expense ratio range below.

Typical Business Expense Factors

Colorado Profession Operating Characteristics Expense Treatment (Est.)
Independent Brokers, Financial Consultants, Real Estate Agents Solo operations from commission-based income Low (10-20%) often allowed.
IT Specialists, Engineers, Remote Contractors/Professions, Therapists, Trainers Project-based income. Work from home/Shared office. limited overhead Low (10-25%) usually allowed.
Attorney & Medical Doctor Private Practice Office staff, rent, equipment Varies (20-35%) - depends on number of employees.
Beauty & Nail Salon Owners Employees, office lease, work stations, inventory Varies (30-50%) - depends on hired staff & locations.
Outdoor Services & Trade Contractors Equipment, labor, transportation High (35-50%) - assumptions due to industry realities.
Hospitality & Food Service/Restaurant Owners Staffing, facilities, inventory High (40-50%+) - even with strong seasonal or annual revenue.

better idea Pro Tip: If your calculated bank statement income is high enough, simply use the default 50% expense ratio and expedite your loan. This removes the extra step of asking your CPA to confirm your expense factor in a letter.