Fixed Cost Ratio
Also known as: Fixkostenquote, living cost ratio, expense ratio
The fixed cost ratio is the percentage of your net income spent on living costs — housing, car, and other recurring expenses. It tells you whether you're living within your means.
What's healthy?
Under 60% = perfect, plenty of room for saving and fun. Under 70% = very good, solid foundation. Up to 80% = still okay, but tight. Over 80% = critical — look at housing and car costs, those are the biggest levers.
How do you calculate it?
Fixed cost ratio = (housing + car + other living costs) ÷ net income × 100. At €2,100 living costs and €3,500 net, you're at 60%. Giving, saving, guilt free, and investing deliberately don't count — those are choices, not fixed costs.
BudgetHeld says
In BudgetHeld, the fixed cost ratio is calculated automatically and color-coded: green (under 70%), yellow (up to 80%), red (over 80%). You see immediately if you need to act.
Related tools
Budget Tool — Overview →Related Terms
Written by David El Dib — Financial expert & founder of MoneyTalk