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.

## 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:

1. First, determine the sum of all property expenses (\$).
• The sum of all property expenses (\$) is given as: 4,000.
2. Next, determine the pretax income (\$).
• The pretax income (\$) is provided as: 5,000.
3. 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