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 = ?
