1. What is the Affordability Calculator?

The Affordability Calculator helps homeowners determine how much they can afford after accounting for insurance costs by subtracting insurance expenses from their income.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• \( Income \) — Total household income in dollars
• \( Insurance \) — Total insurance costs in dollars

Explanation: This calculation shows the remaining funds available after paying insurance premiums.

3. Importance of Affordability Calculation

Details: Understanding affordability helps homeowners budget effectively, avoid financial strain, and make informed decisions about insurance coverage levels.

4. Using the Calculator

Tips: Enter your total income and insurance costs in dollars. Both values must be positive numbers (income > 0, insurance ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What income should I include?
A: Include all regular income sources (salary, investments, etc.) that contribute to your household budget.

Q2: Which insurance costs should I include?
A: Include all insurance premiums you pay (homeowners, auto, health, etc.) for a complete picture.

Q3: What's a good affordability result?
A: This depends on your other expenses. Generally, you want positive affordability after accounting for all essential expenses.

Q4: How often should I calculate this?
A: Recalculate whenever your income or insurance costs change significantly.

Q5: Does this account for deductibles?
A: No, this only considers premiums. You may want to account for potential out-of-pocket costs separately.