# Back End Ratio Mortgage Calculator

Back End Ratio Mortgage Calculator is an essential personal finance assessment tool used to calculate how much of your gross monthly income is utilized for making your debt payments and allows you to know how much mortgage loan can you afford? This calculation can be done using your gross monthly income and total monthly expenses; provide assessment value of your financial situation for future payments against your home loan

### What is Back End Ratio?

The Back End Ratio illustrate that how much of your gross monthly income is utilized for making your debt payments. The payment used in this calculation are typically all of your debt obligations such as car loans, student loans, credit card bill payments, etc. along with your monthly mortgage payments. If your back end ratio is less than 43% you will be qualified for the mortgage loan. So the Back End ratio is a ratio Mortgage lenders used to determine whether an individual has affordable monthly income in order to paying off the debt and qualify for a mortgage

#### Formula for Back End Ratio Calculation

The back end ratio can be calculated from the formula

Yearly Back End Ratio = (Your Annual Gross Salary x 0.43)/12

Monthly Back End Ratio = Your Monthly Gross Salary x 0.43

When you searching for a suitable mortgage loan to buy a home of your choice, you should always calculate how much of your gross monthly income is utilized for making your debt payments? This calculation will help you to analyze your financial situation to make your mortgage payments in time with no obscurity. To make your calculations easy, this online back end ratio mortgage calculator help you to identify mortgage affordability that you required to payoff your home loan maturity, total interest and other loan components in time