Income and Expense Statement

When planning to buy real estate, one should complete a planned expense statement. An expense worksheet will allow you to forecast how much you can afford for a new house. The statement can also help you to to calculate your Housing and Debt Payments Ratios.


Planned Monthly Income & Expense Statement


IncomeMonthly Pay (Gross)$4,700
 Monthly Pay (Net of Taxes)$3,050
 Monthly Interest Income$0
 Monthly Other Income$0
 Total Income$3,050
Amount,Subtract From IncomeLeft:
$895 Mortgage$2,155
$210 Property Taxes$1,945
$75 Property Insurance$1,870
$0Flood Insurance (if needed)$1,870
$0Condo Fee (if needed)$1,870
$325Auto Loan$1,545
$125Credit Card 1$1,420
$125Credit Card 2$1,295
$0Other Debt$1,295
$167Car Insurance$1,128
$0Natural Gas$1,053
$500Food & Other$330
$2,720Total Expenses 
 Disposable Income$330



1. If you do not own your home, substitute rent for mortgage. 
2. (Blue Numbers / $4,700) = .25 (housing ratio) 
3. (Blue Numbers + Green Numbers) / $4,700 = .37 (debt ratio) 
4. ($3,050 - $2,720) = $330 (disposable income)


Lastly, personal savings is not taken into consideration above, and one should try and save via their employer's 401k plan or deduct some savings in the worksheet above and consider it an "expense." (That is, plan on saving something.)

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