Enter the purchase price ($) and the yearly income ($) into the Calculator. The calculator will evaluate the Price To Income Ratio. 

Price To Income Ratio Formula

PTI = P / I

Variables:

  • PTI is the Price To Income Ratio ($/$)
  • P is the purchase price ($)
  • I is the yearly income ($)

To calculate Price To Income Ratio, divide the asset or purchase price by the yearly income.

How to Calculate Price To Income Ratio?

The following steps outline how to calculate the Price To Income Ratio.

  1. First, determine the purchase price ($). 
  2. Next, determine the yearly income ($). 
  3. Next, gather the formula from above = PTI = P / I.
  4. Finally, calculate the Price To Income Ratio.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

purchase price ($) = 60000

yearly income ($) = 20000