Schedule C Sole Proprietorship Income Calculator

Calculate monthly income from sole proprietorship (Schedule C) returns with comprehensive add-backs for depreciation, depletion, and business use of home.

Upload Schedule C

Upload IRS Schedule C pages to auto-fill fields. Upload one per tax year (max 2).

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Schedule C Income Policy

Schedule C income is calculated from net profit/loss plus non-cash add-backs (depreciation, depletion, amortization) and business use of home. Mileage depreciation is added back separately. Non-recurring other income and meal exclusions are adjusted. If two years are provided and Year 1 exceeds Year 2, income is averaged over 24 months. Otherwise, only the most recent year is used.

Business 1

Enter line items from the borrower's Schedule C. Positive values are added; negative values reduce income.

Description Line # Sign Year 1 (Most Recent) Year 2 (Prior)
Net Profit or Loss 31 +/−
Other Income or Loss (non-recurring) 6 +/−
Depletion 12 +
Depreciation 13 +
Meal & Entertainment Exclusion 24b −
Business Use of Home 30 +
Mileage Depreciation — +
Amortization/Casualty Loss — +
Year 1 Income
$0.00
Year 2 Income
$0.00
Monthly Income
$0.00

Business 2 (Optional)

Use this section if the borrower has income from a second sole proprietorship.

Description Line # Sign Year 1 (Most Recent) Year 2 (Prior)
Net Profit or Loss 31 +/−
Other Income or Loss (non-recurring) 6 +/−
Depletion 12 +
Depreciation 13 +
Meal & Entertainment Exclusion 24b −
Business Use of Home 30 +
Mileage Depreciation — +
Amortization/Casualty Loss — +
Year 1 Income
$0.00
Year 2 Income
$0.00
Monthly Income
$0.00

Combined Results

Business 1
$0.00
Business 2
$0.00
Total Monthly Income
$0.00
Schedule C Guidelines

Schedule C (Form 1040) reports profit or loss from a sole proprietorship. Non-cash expenses such as depreciation, depletion, and amortization are added back. Business use of home (Line 30) and mileage depreciation are also added back as they represent non-cash deductions. Meal and entertainment exclusions are subtracted per Fannie Mae guidelines. Two years of returns are recommended; if Year 1 income exceeds Year 2, the 24-month average is used. Otherwise, only the most recent year is divided by 12.