Enter the total mortgage payments including PITI ($) and the total income ($) into the Front-End Ratio Calculator. The calculator will evaluate and display the Front-End Ratio.
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Front-End Ratio Formula
The following formula is used to calculate the Front-End Ratio.
FER = M / I * 100
- Where FER is the Front-End Ratio (%)
- M is the total mortgage payments including PITI ($)
- I is the total income ($)
How to Calculate Front-End Ratio?
The following example problems outline how to calculate Front-End Ratio.
Example Problem #1:
- First, determine the total mortgage payments including PITI ($).
- The total mortgage payments including PITI ($) is given as: 3,000.
- Next, determine the total income ($).
- The total income ($) is provided as: 10,000.
- Finally, calculate the Front-End Ratio using the equation above:
FER = M / I * 100
The values given above are inserted into the equation below and the solution is calculated:
FER = 3,000 / 10,000 * 100 = 30.00 (%)
Example Problem #2:
For this problem, the variables required are provided below:
total mortgage payments including PITI ($) = 6,000
total income ($) = 12,000
Test your knowledge using the equation and check your answer with the calculator above.
FER = M / I * 100 = ?
