Enter the sum of all property expenses ($) and the pretax income ($) into the Housing Expense Ratio Calculator. The calculator will evaluate and display the Housing Expense Ratio.

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## Housing Expense Ratio Formula

The following formula is used to calculate the Housing Expense Ratio.

HER = PE / PI

- Where HER is the Housing Expense Ratio ( )
- PE is the sum of all property expenses ($)
- PI is the pretax income ($)

To calculate the housing expense ratio, divide the sum of all property expenses by the pretax income.

## How to Calculate the Housing Expense Ratio?

The following example problems outline how to calculate Housing Expense Ratio.

Example Problem #1:

- First, determine the sum of all property expenses ($).
- The sum of all property expenses ($) is given as: 4,000.

- Next, determine the pretax income ($).
- The pretax income ($) is provided as: 5,000.

- Finally, calculate the Housing Expense Ratio using the equation above:

HER = PE / PI

The values given above are inserted into the equation below and the solution is calculated:

HER = 4000 / 5000 = .80

Example Problem #2:** **

For this problem, the variables required are provided below:

sum of all property expenses ($) = 6,000

pretax income ($) = 9,000

Test your knowledge using the equation and check your answer with the calculator above.

HER = PE / PI ** = ?**