Example data table
| Scenario | Gross income | Net after tax & deductions | Disposable income | DTI | Housing ratio | Eligible |
|---|---|---|---|---|---|---|
| Sample A | 4,500 | 3,300 | 450 | 7.8% | 26.7% | Yes |
| Sample B | 6,000 | 4,420 | 810 | 7.5% | 23.3% | Yes |
| Sample C | 3,400 | 2,402 | -368 | 14.7% | 32.4% | No |
Formula used
- Gross income = primary income + other income
- Tax = gross × tax% (or a fixed amount)
- Net income = gross − tax − mandatory deductions
- Adjusted living = living expenses + dependents × allowance
- Total expenses = housing + utilities + adjusted living
- Disposable income = net − total expenses − debt payments
- DTI (%) = debt payments ÷ gross × 100
- Housing ratio (%) = housing ÷ gross × 100
- Savings rate (%) = max(disposable, 0) ÷ net × 100
- Eligible = passes all thresholds you set above
How to use this calculator
- Enter monthly income, taxes, and mandatory deductions.
- Add housing, utilities, living costs, and debt payments.
- Set thresholds to match your program or lender rules.
- Press Calculate eligibility to see results.
- Export the report as CSV or PDF when ready.
Income inputs and normalization
Gross income is calculated as primary income plus other income. For example, 4,000 in wages and 500 from side work produces a 4,500 gross baseline. Because the calculator is monthly, annual figures should be divided by 12 to keep ratios across households. Monthly inputs reduce errors from seasonal swings.
Tax and deduction sensitivity
When taxes are entered as a percentage, the tax estimate scales with income. At 20%, a 4,500 gross creates a 900 tax line, while a fixed 900 tax behaves like a cap for higher earners. Mandatory deductions such as retirement or insurance reduce net income dollar for dollar, so a 300 deduction lowers net by 300 immediately. A one point tax increase on 4,500 cuts net by 45.
Expense baseline and dependent adjustment
Total expenses combine housing, utilities, and living costs, then add a dependent allowance. If housing is 1,200, utilities 250, living 900, and one dependent allowance is 150, total expenses become 2,500. This approach helps model programs that recognize higher needs in larger households without changing the income definition. Negative disposable shows the monthly shortfall to fix.
Ratio tests used by programs and lenders
Two ratio checks are shown: debt-to-income and housing ratio. With 350 in monthly debt and 4,500 gross, DTI equals 7.78%, well below a 36% limit. Housing ratio is 1,200 divided by 4,500, or 26.67%, which passes a 28% cap. These tests highlight payment burden even when net income looks adequate. The savings rate uses positive disposable to avoid overstating capacity.
Interpreting eligibility results and next steps
Eligibility is confirmed only when all thresholds pass: minimum net, minimum disposable, maximum ratios, and minimum savings rate. Disposable income is net minus expenses and debts, so improving eligibility often means reducing fixed costs or restructuring debt. Export the report to document assumptions and track changes over time. Use the chart to spot major monthly cash drains quickly.
FAQs
Q1. What does “eligible” mean in this tool?
Eligible means your net income, disposable income, and ratio checks meet the thresholds you entered. It is a screening estimate, not a guarantee, because providers can verify income and expenses differently.
Q2. Should I use monthly or annual numbers?
Use monthly values for every field. If you only have annual totals, divide them by 12 before entering them so the tax, ratios, and disposable income calculations remain consistent.
Q3. Why are there two tax input options?
Some people know an effective tax rate, while others know a fixed monthly withholding. The percent mode scales with income, and the fixed mode holds taxes constant, which is useful for comparing scenarios.
Q4. How is disposable income calculated?
Disposable income equals net income minus total expenses and debt payments. Total expenses include housing, utilities, living expenses, and a dependent allowance to reflect higher household needs.
Q5. Which ratios are calculated?
The calculator computes debt-to-income as debt payments divided by gross income, and housing ratio as housing payment divided by gross income. It also calculates savings rate using positive disposable income divided by net income.
Q6. What can I change to improve eligibility?
Lower recurring expenses, reduce debt payments, or increase income. Even small changes can lift disposable income and improve ratios. You can also align thresholds with the exact program you are evaluating for accuracy.