How do I calculate my income from bank statements?

Step by step

1. Download every statement for the period you need, usually the last 12 or 24 months, for each account that receives income.
2. Convert them to Excel. With the batch converter you upload them all at once and get one Excel file per statement in a ZIP.
3. Paste the transactions into one sheet, sorted by date. Check the first and last balances against the statements so nothing is missing.
4. Keep only money in (positive amounts). The Category column suggests which rows are income and which are transfers; check each one yourself.
5. Remove deposits that aren't income: transfers from your own accounts, refunds, loan or credit card advances, and one-off gifts or sales.
6. Add a Month column and total each month with a pivot table or SUMIFS, then average the months.

What lenders and landlords usually exclude

• Transfers between your own accounts. Money moved from savings isn't new income, and counting it twice is the most common mistake.
• Large one-off deposits. Lenders often ask you to explain any deposit that's out of pattern, so have the paperwork ready.
• Business expenses, if you use business account statements. Many bank statement mortgage lenders apply an expense percentage to business deposits, or ask your accountant for one. The figure varies by lender.
• Refunds, chargebacks and reversed payments.

Rules differ between lenders, landlords and countries. Use your own figure to check you qualify and to spot problems early, then follow the exact method the person asking describes.

They'll still want the original statements

A spreadsheet is your working, not your evidence. Lenders and landlords almost always want the bank's own PDF statements, sometimes downloaded in front of them or sent directly by the bank. Send the originals and keep the spreadsheet to answer their questions.