Start with eligible deposits
Enter an average monthly amount after reviewing which deposits represent business receipts.
Eligible average monthly deposits
Two documentation approaches / one business
Self-employed income comparison calculator
Compare an illustrative deposit-based income estimate with a separately reviewed tax-return figure. See which assumptions drive the difference before choosing a financing path.
No contact details needed to calculate.
01 / Your numbers
Start with your assumptions.
Review the labels and units, calculate, then use the explanation below to understand the result.
Your comparison
See what your numbers show.
Complete the inputs, then choose Calculate. Loading an example fills the form so you can explore the assumptions before calculating.
02 / Read the result
A useful starting point.
Inputs changed. Calculate again to update these results.
See the calculation breakdown
02 / Behind the estimate
Follow the numbers.
Use your own inputs. Sample rates are assumptions, not current offers. This is a planning model, not a loan approval or a recommendation to borrow. The tax-return income is a figure you enter from a separate review; this tool does not read or calculate income from tax returns.
Apply expenses and ownership
Reduce the average by the expense factor, then apply your ownership share.
Deposits × (1 − expenses) × ownership
Compare a reviewed figure
Set the result beside a monthly tax-return income figure supplied separately.
Two estimates / different documentation
The difference is not an approval decision
The tool compares income figures, not DTI, qualifying loan amounts or loan pricing. Neither side is automatically the right lender calculation.
Higher income is only one consideration
Compare rates, fees, down payment, reserves and documentation. A larger modeled income does not necessarily produce a better mortgage.
03 / The details that matter
What changes your result?
Keep the formula and the real-world review connected.
Eligible deposits
Transfers and loan proceeds can inflate apparent revenue. The model cannot identify or remove them.
Expense factor
Use the factor to test sensitivity, then confirm documentation and lender acceptance.
Ownership
The model applies your share after expenses. It does not combine several businesses or household income sources.
Tax-return review
Use a reviewed monthly income figure. A single profit line may not reflect the complete qualifying-income analysis.
04 / Questions answered
Self-employed income comparison questions, answered.
01
Choose the inputs
Keep the documentation approaches distinct.
Why can bank statements and tax returns produce different income estimates?
They document different parts of a business.
This example adjusts eligible deposits for expenses and ownership, then compares the result with a monthly income figure from a separate tax-return review. Tax-return qualification may include permitted adjustments; it is not necessarily the profit printed on one line.
Return to the calculatorWhich deposits should I include?
Start with recurring business receipts that a lender can verify.
Transfers between your accounts, loan proceeds and unexplained one-time deposits may be excluded. The lender determines which deposits are eligible and which period is representative.
Return to the calculatorDoes this calculator analyze my tax returns?
No. You enter the monthly tax-return income figure from a separate review.
The tool compares that amount with its deposit-based example. It does not add back expenses or decide which tax-return adjustments are allowed.
Return to the calculator02
Understand the comparison
Test assumptions without treating them as approval.
Can I choose an expense percentage that gives me a higher income?
Use different percentages to understand sensitivity, but a lender must accept the expense treatment and supporting records.
A profit and loss statement or accountant’s explanation may help document expenses. The calculator does not establish the factor a lender will use.
Return to the calculatorDoes a higher estimate mean a better mortgage?
Not necessarily.
Compare pricing, fees, down payment, reserves, loan features and the documents required. A conventional loan supported by tax returns may still be the stronger option even when a bank-statement model shows more income.
Return to the calculatorHow is ownership applied?
The ownership percentage is applied after the expense adjustment.
For example, $20,000 of monthly deposits with a 40% expense factor and 50% ownership produces a $6,000 monthly estimate in this formula.
Return to the calculator03
Discuss the complete file
Select a route using more than one number.
Can I combine business income with a salary or another borrower’s income?
Possibly, depending on the program and how each source is documented.
Tell the team about all relevant income sources and ownership interests. This tool compares one business-income example; it does not combine a complete household file.
Return to the calculatorWhat records help compare the two approaches?
Bring relevant tax returns, bank statements, ownership details and expense information.
The team can identify what each program requires and which assumptions need support. Avoid choosing a formula solely because its result is larger.
Compare the documentation approaches05 / From estimate to conversation
Bring the questions behind the numbers.
Use these topics to prepare a focused review of your situation.
Deposit history
What we review: Eligible receipts and the averaging period.
Why it matters: The starting average must represent the business.
What to prepare
Statements and explanations for unusual credits.
Expenses
What we review: Costs and support for the modeled factor.
Why it matters: Different assumptions change income materially.
What to prepare
Expense records and relevant accountant-prepared information.
Ownership
What we review: Your share and other business interests.
Why it matters: One company’s receipts may not all be attributable to you.
What to prepare
Ownership documentation.
Loan tradeoffs
What we review: Income figures alongside pricing and required funds.
Why it matters: The larger income estimate may not produce the better option.
What to prepare
Reviewed tax-return income and your purchase or refinance goals.
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