Credit & Debt
Front-end housing ratio
Housing alone. Conventional underwriting typically holds this near 28%.
The Formula
Front-end = Monthly housing expense / Gross monthly income
Housing alone. Conventional underwriting typically holds this near 28%.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| H | Monthly housing expense | currency | Principal, interest, property taxes, homeowners insurance and association dues. |
What Each Symbol Means
Hcurrency
Monthly housing expense
Principal, interest, property taxes, homeowners insurance and association dues.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate debt-to-income ratio page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Debt-To-Income Ratio, filed under Finance. Every number the guide produces comes from substituting into this one line.