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Self Employed Income Calculator

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 have 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.