Here, we present an affordable Augmented Reality (AR) based system to quantify postural stability of an individual which can be used in tele-rehabilitation and personalized health care applications. Postural instability is a prominent symptom of many physiological disorders and is a major precursor of fall risk. Conventional stability scoring techniques require presence of physiotherapist and are time consuming as well as expensive. Proposed system overcomes these difficulties by integrating a low cost Microsoft Kinect and an AR-based environment with a fuzzy stability scorer algorithm. The system gives a real time stability score by quantifying the Single Limb Stance task with variable step height. Results obtained are compared with Berg Balance stability scale to show the efficiency of the proposed system.