How to calculate dti ratio?

[rajivkumar]

Hello, I would like to know how to calculate dti ratio. I am not sure what it is, but I know that it is somehow related to the ratio between the monthly debts and income and what is considered as debt. How do we find it out? Thanks!

 

[jainnorton]

To calculate your Debt-to-Income (DTI) ratio, divide your total monthly debt payments by your gross monthly income, then multiply by 100. This percentage helps lenders assess your ability to manage monthly payments and repay debts.

 

[Jarwish]

To calculate the Debt-to-Income (DTI) ratio, divide your total monthly debt payments by your gross monthly income, then multiply by 100.
Formula: DTI (%) = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100.
A lower DTI indicates better financial health for loan approvals.

 

[Mayank]

To calculate your Debt-to-Income (DTI) ratio, add up all your monthly debt payments, such as loans and credit cards. Then divide this total by your gross monthly income. Multiply the result by 100 to get the percentage.

 

[Lucky]

DTI (Debt-to-Income) ratio is calculated by dividing your total monthly debt payments by your gross monthly income, then multiplying by 100.
Formula:
(Debt Payments ÷ Gross Income) × 100 = DTI Ratio
For example, if your monthly debts are $1,500 and your income is $5,000, DTI = (1500 ÷ 5000) × 100 = 30%.