Check your self-employed readiness for secure financing today. Adjust inputs to see payment comfort instantly. Make smarter decisions before speaking with a qualified lender.
| Scenario | Gross Revenue | Expenses | Add-backs | Existing Debts | Credit | Months | Desired Loan | Term | Estimated APR | Typical Outcome |
|---|---|---|---|---|---|---|---|---|---|---|
| Stable profile | 300,000 | 160,000 | 20,000 | 25,000 | 680 | 18 | 800,000 | 36 | Auto | Eligible or review, depending on ratios. |
| Tight cashflow | 180,000 | 140,000 | 0 | 35,000 | 610 | 10 | 900,000 | 24 | Auto | Often needs review or reduction in amount. |
| Strong documentation | 450,000 | 210,000 | 30,000 | 20,000 | 740 | 30 | 1,200,000 | 48 | 12.00% | More likely eligible with competitive terms. |
Self-employed underwriting starts with consistent monthly revenue. Use an average that reflects recent deposits, not your best month. In the example table, 300,000 gross minus 160,000 expenses plus 20,000 add-backs yields 160,000 qualifying income. That income becomes the base for affordability ratios. If revenue is seasonal, consider entering a conservative figure so the estimate stays realistic. Many lenders average 12 to 24 months; if you have less history, use shorter averages and expect review.
Expense inputs matter as much as sales. Lenders often review recurring costs and remove unusually low months. Track fixed bills, payroll, subscriptions, and taxes you pay monthly. If your expenses rise by 20,000, qualifying income falls by the same amount, pushing DTI higher. Add-backs should be defensible, such as depreciation or one-time repairs, and not routine spending.
The calculator compares debts to income using a risk-adjusted DTI limit, typically 35% to 50%. It also shows DSCR, which measures cashflow coverage after the new payment. For instance, if existing debts are 25,000 and the new payment is 28,000, total obligations are 53,000. With 160,000 qualifying income, DTI is 33.1% and DSCR is 3.02, supporting stronger eligibility.
Documentation improves confidence and pricing. Two years of tax returns plus 12 months of bank statements is treated as strong evidence here. Moderate proof may still pass with higher credit and longer history, while limited proof tightens the DTI limit. Industry risk can also raise the estimated APR, increasing payment size. Always validate figures with your own statements before applying.
Use the maximum payment and maximum loan outputs to plan your target. If the tool suggests a smaller affordable loan, lower debts, extend the term, or increase verified income. Improving credit can reduce APR and payment significantly. Keep clean records, separate business and personal accounts, and maintain stable deposits. These steps can move a review decision toward an approval.
Use an average monthly gross revenue based on bank deposits. If sales vary, pick a conservative average from the last 6 to 12 months to avoid overstating affordability.
Add-backs are non-cash or one-time expenses that reduce taxable profit but may not reduce cashflow, such as depreciation or a single equipment repair. Only include items you can document.
If you leave APR at zero, the tool estimates it from credit score and industry risk. Higher risk or lower credit increases the rate, raising the payment and tightening eligibility.
DTI is total monthly debt payments divided by qualifying monthly income. The calculator uses a risk-adjusted limit that becomes stricter with limited documentation, high risk industries, or low credit.
DSCR compares qualifying income to total obligations after the new payment. Values above 1.20 generally indicate stronger coverage, while numbers near 1.00 suggest a tight margin.
No. It is a planning estimate. Lenders may average income differently, verify expenses, consider taxes and liabilities, and apply their own policies. Use the CSV or PDF report to organize your figures.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.