To determine a family's HCE, Smart Aid performs a tiered calculation on their Household Refined Income (HRI).  Using available $5,000 increments, the calculation will take 20% of the first available increment, 25% of the next available increment, then 30%, 35%, and 40%.  If there are any remaining $5,000 increments at this point, they will then be capped at 50%. 

For example, if Family A's HRI is $13,000, then the calculation is:
(20% of $5,000) + (25% of $5,000) + (30% of $3,000) = HCE of $3,150

Another example is if Family B's HRI is $32,100, then the calculation is:
(20% of $5,000) + (25% of $5,000) + (30% of $5,000) + (35% of $5,000) + (40% of $5,000) + (50% of $5,000) + (50% of $2,100) = HCE of $11,050