Tax return income vs bank statement income, side by side
Enter the borrower's tax return figures for two years and their deposits for 12 or 24 months. The page shows the monthly figure each method gives and the gap between them, for your review of the loan file.
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Compare the two methods
Tax returns (two years)
Schedule C line 31, or the figure the lender uses. A loss can be negative.
Total of the add-backs the lender allows, such as depreciation.
Schedule C line 31, or the figure the lender uses. A loss can be negative.
Total of the add-backs the lender allows, such as depreciation.
Bank statements
Deposits you are counting, after anything you leave out.
Blank is read as 100%.
Enter the factor the lender gives you. Use 0 for none.
Questions
What does it compare?
Two monthly figures. Tax return: (net profit plus the add-backs you enter, for each of two tax years) ÷ 24. Bank statement: total deposits you enter × the ownership share × (100% − the expense factor) ÷ the number of months. Each is rounded to the cent.
Which expense factor should I use?
The one the lender gives you. The calculator sets no factor and doesn't decide which deposits or add-backs count.
Does a higher figure mean the loan will be approved?
No. The page shows arithmetic on the figures you enter. The lender decides which documentation it takes and what income it uses.
Where do the deposit totals come from?
From the borrower's statements. The bank statement converter on this site turns one statement PDF into rows with a credits total, and StatementReady loan files total 12 to 24 months.
Is this the Fannie Mae calculator?
No.
Not legal or tax advice.
Ready for the real statements?
Upload 12 or 24 months of PDFs. StatementReady checks whether each statement's transactions add up to its printed balances.
This tool assists your review of the loan file. The lender makes all underwriting decisions.
StatementReady isn't affiliated with or endorsed by Fannie Mae or any lender named here.