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?

  1. First, determine the monthly debt payment.

    Sum together all of the monthly debt payments made by the borrower.

  2. Next, determine the monthly income.

    Calculate the total monthly income brought home by the borrower.

  3. Finally, calculate the back-end ratio.

    Calculate the back-end ratio using the equation above.


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.

back-end ratio calculator
back end ratio formula