Self-Employed Income Calculator

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Calculator estimates are educational. A real mortgage professional can review your circumstances, documentation and lender requirements. A scenario review is not a loan approval or a guarantee of terms.

210 Mortgage | NMLS #219381

210 MORTGAGE • SCENARIO TOOLS

Understand your business income trend

This self-employed income calculator compares borrower-attributable business income across two completed years and a current YTD period. This models adjusted averages and trends; it does not determine qualifying income.

1. Two completed annual periods

Use two full 12-month periods from the same business and the same accounting basis.

Earlier annual income or loss ($)

Borrower-attributable net income for a full year. Negative losses are allowed.

Most recent annual income or loss ($)

Same income definition and a full 12-month period.

2. Lender-reviewed adjustments

Positive adjustments increase the modeled amount; negative adjustments decrease it. Leave zero unless there is a supported adjustment.

Earlier-year net adjustment ($)

Signed total of reviewed additions minus required subtractions.

Most recent year net adjustment ($)

Enter zero when no supported adjustment is available.

3. Optional year-to-date comparison

Enter completed months and figures for the same period. Zero months means no YTD comparison.

Completed YTD months

0 to omit; otherwise 1–12 whole months.

YTD income or loss ($)

Borrower-attributable net result for the entered months.

YTD net adjustment ($)

Reviewed net adjustment for the same period.

No contact information required. Numbers stay in the browser unless you choose to share them in a review request.

Your scenario estimate

Complete the numbered sections, then select Calculate.

Educational estimates, not approval, a rate quote or a commitment to lend. Entered rates are hypothetical modeling assumptions, not currently available 210 Mortgage rates. No APR calculation, ARM changes or automatic eligibility decision. Self-employment results are arithmetic scenarios, not agency qualifying-income determinations. 210 Mortgage • Tyler Krug NMLS #219381 • Mortgage loans originated through My Community Mortgage, LLC NMLS #2408499 • Equal Housing Lender. See site licensing and disclosures.

How to Use the Self-Employed Income Calculator

Step 1: Two completed annual periods

Enter net income or loss attributable to you for the earlier and most recent completed years. Use income after business expenses, not gross sales, deposits or owner draws. If a K-1 already reflects your ownership share, do not multiply it again. This tool does not allocate ownership or evaluate access to distributions.

Step 2: Lender-reviewed adjustments

Enter net adjustments for each period only when the applicable cash-flow analysis supports them. Not all depreciation, amortization, one-time expenses or retained earnings can be used. Do not double count W-2 salary or a distribution already included in your figures.

Step 3: Optional year-to-date comparison

Enter the number of completed months covered by the P&L, from 1 to 12, then net income or loss attributable to you and any reviewed adjustment for those same months. Leave months at 0 to omit YTD. A monthly pace is not a full-year forecast and can be misleading for seasonal businesses.

Calculate, compare and request a review

Choose Calculate to see your estimate. Change one assumption at a time and calculate again. Contact information is optional. Use the review form or Text a Question when you need help verifying the inputs.

How the Calculator Works

Adjusted annual income = entered borrower-attributable income plus the signed reviewed adjustment. The two-year monthly average is the sum of both adjusted annual amounts divided by 24. YTD pace is adjusted YTD income divided by entered completed months; it is not included in the historical average.

Example calculation

Earlier adjusted income of $96,000 and latest adjusted income of $120,000 produce a $9,000 two-year monthly average. Adjusted YTD income of $54,000 over six months produces a $9,000 monthly pace. These are modeled figures, not an approved qualifying amount.

How to interpret your results

Compare the latest year and YTD pace with the historical average. A lower recent pace needs explanation and documentation. No automatic rule in this tool turns a particular percentage decline into approval or rejection.

Assumptions and factors that change the result

One business, two full annual periods and borrower-attributable results. No automated ownership allocation, business-liquidity analysis, tax deduction, guaranteed income continuance, documentation waiver or program selection. Fannie Mae requires a documented cash-flow and stability analysis; other agencies and lenders may use different methods.

Frequently asked questions

Can I enter my gross sales?

No. Use net income or loss after business expenses attributable to you, with supported cash-flow adjustments entered separately.

Will the lender use the two-year average?

Not necessarily. Documentation, current trends, business structure, distributions, liquidity and the applicable program determine usable income.

Related 210 Mortgage guides

Methodology sources

Guideline references checked October 6, 2026. Mathematical comparisons do not replace the applicable lender’s review.

Fannie Mae self-employed borrower analysis