Bank statement loan calculator

A bank-statement lender does not ask what you earn. It adds up your deposits, removes the ones that are not income, divides by the months, and takes off an allowance for business expenses. This page shows that arithmetic step by step with a worked example, and the tool runs it on your own statements in your browser. The result is an estimate for your preparation, not a lender's decision.

Run the lender view on your statements

Step 1: which months count

Programs use the last 12 or the last 24 consecutive months of statements from one account. A month counts when a statement for it is present. Months with nothing between the first and last statement are gaps and are flagged. The tool divides by the months actually present, and it only shows the 24-month figure when all 24 statements are there; otherwise it tells you which months to add.

Step 2: eligible deposits

Start with every credit on the statements. Then remove three kinds of credit that are not income:

• Transfers from your own accounts. Wording like "Transfer from Savings ...8821" or an online transfer from another of your accounts. Moving money between your own accounts is not income.
• Refunds and reversals. Credits described as refund, reversal, reversed, chargeback, credit adjustment, returned purchase or payment, or merchant credit. They return your own money.
• Large deposits. Any other single credit above 150% of your mean monthly credit total. The mean is all credits over the whole period divided by the months present. A deposit that big is left out unless you can document where it came from; in the tool you can click that month's bar to include it, and the flag then says it is counted at your request and still needs a source letter.

What is left is the eligible deposits. The 150% threshold is computed from all credits before anything is removed.

Step 3: the income figure

Divide eligible deposits in the window by the months present. Then:

• Business account: multiply by (1 minus the expense factor). Deposits into a business account are revenue, not profit, so the lender assumes some share went to expenses. Factors run from 10% for a one-person service business to 50% for one with inventory or staff. The tool's slider runs from 10% to 50% and starts at 25%, a common default; many programs accept a CPA letter stating your real ratio instead.
• Personal account: multiply by 1. The money has usually already passed through the business, so there is nothing more to deduct.

The monthly figure is the income the lender uses for the debt-to-income ratio.

A worked example

Twelve months of statements from a business checking account. Over the year, all credits add up to $96,000, so the mean monthly credit total is $8,000 and the large-deposit threshold is 150% of that, $12,000.

If this were a personal account, the figure would stay at $6,200. If the borrower provides the bill of sale for the van and the lender accepts it, the $15,000 goes back in: $89,400 ÷ 12 = $7,450, × 0.75 = $5,588. Moving the expense factor to 50% on the original figures gives $3,100; at 10% it gives $5,580.

Step 4: the flags

The tool raises the same flags an underwriter would:

• Large deposit: $X on a date. One flag per excluded deposit, with "Needs a source letter". If you included it, "Counted at your request".
• Overdraft and NSF fees. Counted from the wording (NSF as a whole word, overdraft, insufficient funds, returned item), with dates and amounts. Many programs allow none, or at most two or three, in twelve months.
• Deposit variation. The lowest and highest month of eligible deposits. Amber when the highest is more than twice the lowest.
• Transfers from your own accounts. Listed by account suffix with the total, so you can see what was excluded.
• Gaps. How many months are missing between the first and last statement.
• Reconciliation. A statement whose rows do not add from its printed opening balance to its printed closing balance is flagged; a page is probably missing.
• Lowest balance and its date. Amber when it is below one month of eligible deposits, because reserves after closing are part of the decision.

What this is not

These rules are the common ground of bank-statement loan programs, not any one lender's underwriting. Lenders differ on the large-deposit threshold, on whether cash deposits count, on the default expense factor for your industry, and on how many fees they will tolerate. The figure here tells you where you stand and what to prepare; it does not tell you what you will be offered. Bank Statement Analysis is not a lender, broker or financial adviser. These figures are not a lender's decision.

For background on the loans themselves, read how bank-statement loans work; for the reasoning behind each flag, what lenders look for in bank statements.

Run it on your statements

Download 12 or 24 months of PDF statements from online banking, drop them on the home page, and open the lender view. Set the account type and the expense factor, click any month with a large deposit to include or exclude it, and export the summary as a printable page. Nothing is uploaded; the privacy page lists the only data that leaves your browser.

Run the lender view on your statements