April 27, 2026 · Zack Cervantes, NMLS #502342
How Do Lenders Calculate Income From Bank Statements?
The exact math underwriters use — average deposits, expense factors, and what gets excluded.
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What People Ask
How do lenders calculate income from bank statements?
Lenders add all deposits over 12 or 24 months and divide by the number of months to get a monthly average. Personal bank statements use the full average. Business bank statements typically have a 50% expense factor applied. Account transfers between your own accounts are excluded.
Do transfers between accounts count as income for bank statement loans?
No. Moving money between your own accounts — business to personal for example — is excluded from the deposit average. Lenders only count actual revenue: client payments, invoices, and external income depositing into the account.