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How to use
- Enter Monthly housing expense.
- Enter Gross monthly income.
- Calculate, then review what is included in the definition before making a financial decision.
How it is calculated
Ratio = monthly housing expense ÷ gross monthly income × 100
Example
Housing expense of 3,500 on gross income of 12,000 gives about 29.17% and leaves 8,500 before other expenses.
Important notes
Include only items you define as housing expense, such as mortgage, taxes, insurance and association fees when relevant.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Ratio | 3500 ÷ 12000 × 100 | 29.166667 % |
| Remaining income | 12000 − 3500 | 8,500 |
Frequently asked questions
Is there one ideal ratio?
No. A general benchmark does not replace analysis of actual debts, taxes, expenses or lender policy.
Is this a loan approval or credit decision?
No. This is a numerical calculator only; lenders may use different income, debt, appraisal and fee policies.
Should I use gross or net income?
Use the income type named by the field. Do not substitute net for gross because it changes the denominator and result.