Why the self-employed mortgage affordability calculator matters
The deductions that lower your tax bill also lower the income a lender will use, which is why profitable self-employed buyers get surprisingly small approvals. This page turns that decision into a handful of inputs you can defend in a budget review: volume, unit cost, rate of adoption, and time. The output is a planning baseline, not a promise — it tells you whether the idea deserves a vendor quote, a pilot, or a pass.
- • Biggest swing factor: the net income figure after deductions, not revenue
- • Second-order factor: monthly debt including business obligations you guarantee
- • Often ignored: the rate available at your documentation type
What actually changes the answer
the net income figure after deductions, not revenue moves this number first, then monthly debt including business obligations you guarantee. Run a conservative case and an upside case before you commit. If the maths only works in the upside case, treat it as a time-boxed test with a kill date rather than a line in next year's plan.
What to do with the result
Enter your average net profit from the last two tax returns, not your gross billings.
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Read the guideFAQ
What does the self-employed mortgage affordability calculator work out?
It applies Max payment = min(36% × monthly income − debts, 28% × monthly income); Loan = payment × [(1 − (1 + i)^−n) ÷ i]; Price = loan + down payment to the values you enter for gross annual income, existing monthly debt payments, down payment / cash available, interest rate, loan term (years). The deductions that lower your tax bill also lower the income a lender will use, which is why profitable self-employed buyers get surprisingly small approvals.
How accurate is this self-employed mortgage affordability calculator?
Only as accurate as the income figure you enter. Bank-statement and non-QM programmes use different calculations entirely. Replace the defaults with your own invoice, usage export, payroll data, statement, or vendor quote before making a commitment — the maths is exact, so the answer is only as good as the inputs you feed it.
Which input should I stress-test first?
the net income figure after deductions, not revenue. Re-run with a pessimistic value for it; if the decision flips, that assumption is the thing you need real data on before signing anything. After that, check monthly debt including business obligations you guarantee and the rate available at your documentation type.
Which scenario should I start from?
Start with the preset closest to your situation — cautious budget, today's numbers, stronger position — then edit the sliders. Presets are realistic starting points, not benchmarks to match, and every change updates the result instantly.
What should I do after running the numbers?
Enter your average net profit from the last two tax returns, not your gross billings. A useful planning benchmark to compare against: Lenders typically average two years of net self-employed income after deductions.
Can I share or save this calculation?
Yes. Your inputs are written into the page URL, so copying the link shares the exact scenario you are looking at — the person who opens it sees the same numbers. You can also export the inputs and results to CSV or PDF from the result card and keep it with the rest of your workings.
How this calculator is built
Independently maintained
Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
Sourced from primary data
Benchmarks come from public AdSense / Stripe / IRS disclosures and reader-submitted data — never third-party "$X per view" claims. Full methodology.
Last editorial review
Reviewed on a rolling quarterly cycle. Dated reviews are published on the methodology record for each calculator.
Editorial standards
See our editorial policy and disclaimer. Results are estimates, not advice.