Income and Expenses Calculator

1. Monthly income    
Wages, salaries, tips
Other income
Total Gross Monthly Income (GMI)
2. Conventional allowable percentage of income for housing expense

28% of GMI (0.28 x GMI)


36% of GMI (0.36 x GMI)

3. Monthly Expenses to pay debt    
Auto loans
Student loans
Other loans
Credit card payments
Other loan payments
Total Monthly Debt Service
4. Amount Available for Total PITI Mortgage Monthly Payment
Subtract current debt service from allowable percentage of income for housing expense

28% GMI figure minus debt service


36% GMI figure minus debt service

Use one of our mortgage calculators to see the price range of affordable mortgages.
5. Double check this estimate against your actual expenses and available income.
For the most realistic figures, double check this estimate using your actual monthly expenses
Other Monthly Expenses    

Electricity, water, natural gas, phones, fuel oil, etc.

Life Insurance
Health Insurance
Auto Insurance
Auto expenses (gas, repairs, etc.)
Other transportation (tolls, fares)
Medical expenses (not covered by insurance)
Child care
Alimony or child support
Health/Fitness Club (gym)
Meals out
Other living expenses (toiletries, cleaning supplies, etc.)
Miscellaneous (anything else not accounted for)
Total Monthly Expenses
Now subtract this figure from your gross monthly income

GMI minus monthly expenses

How does the result—your income after these expenses—compare to the figures in Step 4: "Amount Available for Total PITI Mortgage payment"? This figure should be greater than your 28% figure in Step 4 and ideally greater than the 36% figure. If it is smaller than the 28% then you will need to lower the amount you have available for mortgage expenses to at least this figure but to an even lower figure if you want to have any disposable income.

Home Needs vs. Wants

Please download and print the PDF file.


Neighborhood Needs vs. Wants

Download and print this worksheet  to help you decide which criteria are those that are necessary and those that would be nice to have. Add any other criteria you may have.


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