Self Employed Income Calculator

Self employed income details

  • Year
  • Net Profit Before Tax (NPBT)?
  • Add back Director's salaries?
  • Depreciation?
  • Extra superannuation paid?
  • One off expenses?
  • Year 1 (e.g. 2012)
  • Year 1?
  • $
  • $
  • $
  • $
  • $
  • Year 2 (e.g. 2013)
  • Year 2?
  • $
  • $
  • $
  • $
  • $

Contact a mortgage broker

Talk to one of our mortgage brokers about your situation: Yes  No  

How will the banks assess your income?

As a self employed borrower, your income is somewhat open to interpretation. You may know what the current income of your business is and what your future income will be. However, the banks will always rely on historical figures to assess your income.

In most cases, this means using your last two years tax returns and then adding back things like depreciation. However, not every bank uses the same method to turn the figures in your tax returns into a figure for your income.

Some will average the income from the last two years, whereas others will use the most recent years income. They all have different methods of adding back, one off expenses, and any additional superannuation that you’ve paid. You can read more about how the banks will interpret your income on our self employed home loans page.

How can this calculator help?

This self employed income calculator is based on the actual calculations used by four major lenders to work out your assessable income. It will give you a much better idea of how much the banks will actually lend to you.

What if my income is higher?

Your most recent tax return may be several years old and therefore may no longer be a true reflection of the income of your business.

If your income has increased and you know you can afford to borrow more, then why not consider proving your income with BAS or applying for a low doc loan.

How else can I prove my income?

There are a variety of ways that you can prove your income if you don’t have financial statements and up to date tax returns.

Please refer to our alternative income verification for self employed borrowers page for more information.

Do you need help with a home loan?

Most bank managers and credit managers have never been self employed, do not have a background in accounting and simply do not understand how to interpret financial statements.

However, our mortgage brokers are experts in lending to self employed borrowers, trusts, companies and professional investors!

We can quickly assess your income and work out if you are eligible for a mortgage. Please call us on 1300 889 743 or enquire online to speak to one of our mortgage brokers.

  • Kate H

    What if I want to use forecasted income on my home loan?

  • Hi Kate,

    You can use forecasted income but you’ll generally be required to meet certain requirements such as provide a profit forecast that’s been prepared or verified by a certified accountant, provide last two years’ tax returns that show a profit and borrow entirely for business purposes. For more information regarding this as well as other ways to verify your income, please check out this page:

  • Christopher

    I’m a florist and want to get a home loan. There was a small loss in the first year and this year my business have generated sound profit. Can I show the recent financial statement only for my loan application?

  • Hi Christopher,

    Most lenders usually require two year financials and tax returns to establish a consistent income, however there are some lenders that can go by one years tax returns.

    If you don’t have your latest tax return after the business has started doing well, there are some lenders that can still help you based on the income that can be proved by one or all of the following: Business Activity Statement, Business Transaction Statements, or Accountant Declaration.

  • Ruth5

    I was born in Australia but moved to the US only a few years back for business. I’m self employed and as I’ve been earning better, I want to invest in a house down under to move to in a few years.

  • Hi Ruth,

    We know a few lenders that can accept self employed applicants overseas as an exception. If you worked PAYG before then we may be able to show old PAYG income to make the deal stronger and argue for exceptions too. Please call our overseas number +61 2 9194 1700 to discuss with our Australian expat home loan specialists.

  • Mit

    My income and everything should be okay to service a home loan but I’m not sure about what else can derail a home loan approval. May I have some points to consider?

  • Hey Mit,
    Well you can consider these 11 reasons your home loan may be declined, which are explained here in this page:

  • Styles

    I am actually considering to buy a commercial property so I am thinking if I should really need a commercial mortgage broker or go straight to a bank. For what should I consider a broker?

  • Hi Styles,

    Buying commercial real estate for investment or to purchase your business premises takes a lot of work and planning and that doesn’t even factor in trying to get finance. On top of that, commercial lending policies aren’t as black and white as they are in residential lending so it pays to have an experienced commercial mortgage broker on your team. Please check out this page to learn of the benefits and what should you look for in a commercial broker:

  • Nelly

    I’m a self employed contractor and I’ve been working like this for the past 10 months. Usually, I have 2 contracts running simultaneously. I’ve had a total of 6 contracts so far and yet I was declined by a bank when I first applied for a home loan with them. What can I do?

  • Hey Nelly,
    We may be able to help you though it will be better if you can wait for at least 2 months so your ABN is of 12 months. You can also use interim financials and if you have an overdraft, provide a projection and take it to commercial. Please call 1300 889 743 if you’d like to discuss this thoroughly with an expert mortgage broker.

  • Rootie

    I’m a self-employed carpenter and I work with the construction company based on a contract. Will it suffice to the bank as my income evidence?

  • Hi Rootie,
    Apart from the contracts, you need to provide your last 2 years tax returns to the bank. If you can’t provide the returns, then some of our lenders will accept two years financial statements. However, please note that those statements should be accountant prepared not a draft. You could check our alternate income verification page and know more.