Income & Expenses Worksheet

1. Monthly income    
Wages, salaries, tips
 
Interest
 
Dividends
 
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
 
     
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    
Taxes
 
Food
 
Utilities
 

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
 
Education
 
Clothing
 
Recreation/Entertainment
 
Health/Fitness Club (gym)
 
Meals out
 
Vacations
 
Charity
 
Retirement
 
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)

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.

Back to the Home Buying Guide.