Free calculator
Write-off cost calculator
Yes, write-offs can cost you on a mortgage. When a loan uses your tax returns, every dollar you deduct is a dollar less income on paper, so a deduction of $12,000 a year takes $1,000 a month off what the lender counts. Type in yours and see.
Your next step
Want a loan officer to look at your real numbers instead of an estimate? Start with the self-employed loan programs page.
How the math works
When a loan qualifies you on your tax returns, each dollar you deduct is a dollar less of income on the return. The calculator spreads the year’s deduction across 12 months: yearly deduction ÷ 12 = monthly income lost.
Some deductions get added back by lenders, depreciation being the usual example. Leave those out, and check with the lender which ones it adds back.
Questions about this calculator
Should I stop taking write-offs before I buy?
That’s a call for you and your tax preparer. This tool only shows the income side, so you can weigh it against the tax a deduction saves before you decide.
Does this matter for a bank statement loan?
Less so. A bank statement loan starts from your deposits rather than your tax return, so a write-off on the return doesn’t feed into it the same way.
Why doesn’t it show a payment or how much I could borrow?
This site doesn’t show rates or payments. The calculator stops at the income you give up, which is the part you control.