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1099 Income Calculator for a Mortgage
Lenders average your last two years of 1099/Schedule C net profit to figure out your qualifying income. Enter your numbers below to estimate your qualifying monthly income and the mortgage payment you could realistically afford.
Estimated qualifying monthly income
🔒 100% private — everything is calculated in your browser, nothing is sent to a server.
Why lenders calculate 1099 income differently
Unlike a W-2 employee, a 1099 contractor's income isn't a fixed number a lender can just read off a paystub. Most conventional lenders average the net profit from the last two years of tax returns (Schedule C, line 31) and divide by 24 to get a stable monthly qualifying income — even if your income varies a lot month to month.
- ✅ Two years of net profit (not gross revenue) are averaged
- ✅ The average is divided by 24 to get a monthly qualifying figure
- ✅ Standard debt-to-income limits then apply, same as any borrower
- ✅ A declining trend between year 1 and year 2 can trigger extra scrutiny
Frequently asked questions
Is this financial advice?
No. This tool gives a rough, educational estimate only. Actual mortgage qualification depends on your full financial picture, credit score, assets, the specific lender's guidelines, and current rates. Always talk to a licensed mortgage professional before making a decision.
Is my data saved or sent anywhere?
No. Every calculation runs locally in your browser with plain JavaScript. Nothing you type is sent to a server, stored, or shared.
Why do self-employed borrowers need a different calculator?
Because lenders don't use your gross revenue — they use net qualifying income after specific averaging and expense-factor rules that only apply to 1099/self-employed income, which a generic mortgage calculator doesn't account for.
Do lenders use gross revenue or net profit?
Net profit — what's left after business expenses and deductions on Schedule C. This is usually much lower than gross revenue, which is why many self-employed borrowers qualify for less than they expect.
What if my income went up a lot in year 2?
Most lenders still average both years rather than using only the most recent one, though some allow an exception with strong documentation of the trend. Ask your lender directly.
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