Enter the sum of all of the borrower’s monthly debt payments and their monthly income to determine the back-end ratio.

## Back-End Ratio Formula

The following formula is used to calculate the back-end ratio of a borrower.

BER = D / I

- Where BER is the Back-End Ratio
- D is the monthly debt payments
- I is the total monthly income

To calculate the back-end ratio, divide the monthly debt payments by the monthly income.

## Back-End Ratio Definition

A back-end ratio is defined as the ratio of the total monthly debt payments to the total monthly income of an individual or borrower.

## Back-End Ratio Example

How to calculate a back-end ratio?

**First, determine the monthly debt payment.**Sum together all of the monthly debt payments made by the borrower.

**Next, determine the monthly income.**Calculate the total monthly income brought home by the borrower.

**Finally, calculate the back-end ratio.**Calculate the back-end ratio using the equation above.

## FAQ

**What is a back-end ratio?**

A back-end ratio is a measure of the ratio of total monthly debt payments to the total gross monthly income of an individual borrower.