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 ($)
- PI is the pretax income ($)
How to Calculate 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 = ?
