Mortgage Income Calculator for a Refinance or Home Equity Loan
Enter your income from every source. This calculator shows the number a lender is likely to count for a refinance or home equity loan, because your paycheck is not always the figure that is used. Income that changes is averaged, only part of rent counts, non-taxable income gets a boost, and income that will not last is left out.
What you enter is not saved. We do not collect it. It stays in your browser and disappears when you refresh or leave this page.
Enter income for everyone on the loan
Choose the kinds of income you have, then fill in what you know. Leave anything that does not apply blank. The rules shown are the common ones for conventional loans (Fannie Mae’s published rules). FHA, VA, and USDA loans, and individual lenders, can differ, so treat this as a strong starting point and ask your lender how it will count your income.
Pick every kind that applies. You will only see the questions for the kinds you choose, and you can change your picks at any time.
Choose at least one kind of income above to get started.
Pay from a job
Salary or hourly pay from each job. Enter your pay before taxes.
Overtime, bonus, commission, or tips
Pay that changes from year to year. Lenders average it, so enter what you earned in each period.
Self-employment (Schedule C)
For a business you file on Schedule C. Enter your two most recent tax returns.
| From your Schedule C | Older year | Most recent year |
|---|---|---|
| Net profit or (loss)Schedule C, line 31. Enter a loss as a negative number. | $ | $ |
| DepreciationLine 13. Counts back in your favor: it is not a cash cost. | $ | $ |
| DepletionLine 12 | $ | $ |
| Amortization or casualty lossOnly these items from Part V (other expenses). | $ | $ |
| Business use of homeLine 30. Counts back in your favor. | $ | $ |
| Meals and entertainment that are not deductibleSubtracted. Lenders often point to line 24b. | $ | $ |
| Other income that will not continueLine 6. Subtracted unless it will repeat. | $ | $ |
| Months in business that yearUse fewer than 12 for a first, partial year. Leave blank for a full year. |
If you own an S corporation, partnership, or corporation, enter the pay you receive from it as a job above. Your lender will review the business tax returns separately, which this calculator does not do.
Social Security, pension, and retirement
Monthly income from retirement and benefit sources.
Child support or alimony
Counted only if you choose to use it and it meets the history and length rules.
Interest and dividends
Income from savings, bonds, and investments, from your tax returns.
Rental income
Rent from property you own or are buying, after the lender subtracts the payment.
Other regular income
Long-term disability, VA benefits, and similar income with an award letter.
“Simple monthly” is the plain monthly figure before a lender’s rules are applied. “Lender may count” is after averaging, adding back, and the other rules. Gross income means before taxes.
Next, see what this income can support with the equity calculator and the refinance versus second mortgage comparison. Your income is only one part of the picture: lenders also look at your monthly debts and credit.
How this mortgage income calculator works
Each kind of income is run through the rules a conventional lender applies. A salary is divided by 12. Overtime, bonus, and commission are averaged over the months you give, with a minimum of 12 months, and a recent drop means only the current level counts. Self-employed income starts with the profit on your Schedule C, adds back non-cash costs such as depreciation, and averages two years, or uses only the latest year when profit is falling. Social Security, pension, and disability are counted at the monthly payment, and non-taxable income is increased by 25%.
Why a lender may count less than you earn
Lenders want income that is steady and likely to continue. Income that changes is averaged, so a good recent month does not raise it much. Income with an end date, such as child support that stops in two years, has to last at least three more years. A second job needs 12 months of history. Only 75% of rental income counts because of vacancies and upkeep, and the full property payment is subtracted from it. Money you plan to spend on your down payment stops earning income for you.
What this calculator leaves out
It covers the most common income types. Royalties, trust income, seasonal work, military pay and allowances, restricted stock, and income from a corporation or partnership you own have their own rules, so ask your lender about those. It also does not look at your debts, credit, or assets. Rules come from Fannie Mae’s Selling Guide, sections B3-3.1-01, B3-3.3-01, B3-3.3-02, B3-3.4-02, B3-3.4-03, B3-3.4-08, B3-3.5-01, and B3-3.8-02, as of October 2026.
Common questions about mortgage income
How do lenders calculate income for a refinance or home equity loan?
Lenders use your gross monthly income, which is before taxes, from sources they can verify and expect to continue. A salary is divided by 12, and hourly pay is your rate times your regular hours. Income that changes, such as overtime, bonuses, and commission, is averaged over about two years. Each lender and loan program sets its own rules, and this calculator shows the common conventional-loan approach.
Can I use overtime, bonus, or commission income?
Usually yes, if you have received it for at least 12 months. Lenders prefer two years. They average your earnings this year and last year. If the income is dropping, the lender has to confirm it has levelled off and then counts only the current level, so a recent drop can reduce it or remove it.
How is self-employed income calculated?
Lenders start with the net profit on your tax returns, add back expenses that are not cash costs, such as depreciation, and average two years. If your profit fell from one year to the next, they use only the most recent year. A business loss is subtracted from your other income. Owners of corporations and partnerships get a separate review of the business returns.
Does non-taxable income count for more?
Yes. When income is non-taxable and will stay that way, such as many Social Security, disability, and child support payments, a lender can add 25% to it. For example, $1,000 a month of non-taxable income can count as $1,250.
Do Social Security, pension, and retirement withdrawals count?
Yes. A fixed pension or Social Security payment needs no minimum history. Withdrawals from an IRA or 401(k) that change from month to month need a 12-month history, and your account balance has to be able to support them for at least three years.
Can I use child support or alimony as income?
It is your choice. You do not have to disclose it, but if you want it counted, you need at least six months of on-time payments and at least three more years of payments ahead, shown by a court order or divorce decree.
How is rental income counted?
For a lease or market rent, lenders count 75% of the rent and subtract the full monthly payment, which includes the mortgage, taxes, insurance, and HOA dues. A positive result is added to your income, and a negative result counts as a monthly debt. For a property on your tax returns, they add back depreciation, interest, taxes, and insurance, and divide by the months it was rented.