Housing Expense Ratio Calculator

Calculate Housing Expense Ratio



Formula

The formula to calculate the Housing Expense Ratio is:

\[ \text{HER} = \frac{\text{PE}}{\text{PI}} \]

Where:

Housing Expense Ratio Definition

The Housing Expense Ratio is defined as the ratio of the sum of all property expenses to the pretax income.

Example Calculation

Let's consider an example:

Using the formula to calculate the Housing Expense Ratio:

\[ \text{HER} = \frac{2000}{8000} = 0.25 \]

This demonstrates that with property expenses of $2,000 and a pretax income of $8,000, the Housing Expense Ratio is 0.25 or 25%. ✅