What does the self employed income calculator do?

The self employed income calculator lets you enter your last two or three tax years of income and shows figures such as latest year income, two year average, three year average and the lowest of the last two years. It is designed to mirror the way many lenders look at self employed income for mortgage assessments.

Which self employed profiles can I use this calculator for?

You can use the calculator for sole traders and partnerships, limited company directors and CIS workers or contractors. The inputs adjust depending on the option you choose so you can enter net profit, salary plus dividends, salary plus net profit, salary plus retained profits or contract income as appropriate.

Do lenders always use a two or three year average for self employed income?

Not always. Some lenders will use the latest year figure if income is stable or increasing, while others prefer an average of the last two or three years. If your income has fallen, some underwriters may work from the lower of the last two years instead. The calculator shows all of these figures so you can see how they compare.

How does the calculator work for limited company directors?

For limited company directors the calculator allows you to select the income basis used by many lenders, such as salary plus dividends, salary plus net profit or salary plus retained profits. You enter the figures for each tax year and the tool totals them to give yearly income and the relevant averages.

Is this self employed income calculator the same as a lender’s decision?

No. The calculator is a guide only and cannot replicate every lender’s criteria, treatment of losses, add-backs or future changes in income. It is intended to give you a clearer idea of how your figures might be viewed before you speak with a mortgage adviser who can check them against specific lender policies.

Self Employed Income Calculator

Estimate income for mortgage purposes based on the last 2 or 3 tax years.

Sole trader / partnership

Limited company director

CIS / contractor

Enter your last 2 or 3 tax years of net profit from self employment. The calculator will show the latest year, 2 year average, 3 year average and the lowest of the last 2 years.

Limited company income basis

Tax year ending	Net profit (£)	Dividends (£)	Total for year (£)

Latest year income

2 year average

3 year average

Lowest of last 2 years

Many lenders will look at either the latest year or an average of the last 2 years, depending on your profile and how stable your income is. Some may use the lower of the last 2 years if income has reduced.

Start Your Enquiry

Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.