Calculate Debt To Income Ratio

To calculate your estimated DTI ratio simply enter your current income and payments.

Calculate debt to income ratio. DTI is calculated by dividing your monthly debt obligations by your pretax or gross income. How To Calculate Your Debt-to-Income Ratio. To determine your DTI ratio simply take your total debt figure and divide it by your income.

The back or total debt to income ratio is calculated by adding your proposed housing debt to your other debt such as payments on car loans car leases student loans or credit card debt and then divided by your income. For example if your monthly debt is 2000 and your monthly income is 6000 your DTI is 2000 6000 or 33. To calculate your DTI ratio add up your total debt and divide it by your income.

To arrive at your DTI youll first need to figure out your total monthly debt payments and gross monthly income. Debt-to-income ratio DTI is the ratio of total debt payments divided by gross income before tax expressed as a percentage usually on either a monthly or annual basis. To calculate debt to income ratio start by adding up your monthly costs for housing transportation credit cards medical bills loan payments and any other recurring bills to calculate your monthly debt.

This process can be confusing so consider these tips as you complete the calculations. Your DTI is 40. Finally multiply that answer by 100 to determine your debt to income ratio percentage.

The hardest part is ensuring youre including the right numbers in both your debt calculation and your income. To express this as the typical percentage multiply that number by 100. Using the Debt to Income Ratio Calculator.

This is the total amount of net income you make in a month. Calculating your debt-to-income ratio in easy 4 steps. This would result in a debt-to-income ratio of 069.