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How To Calculate Your Debt To Income Ratio

From LaToya Irby,
Your Guide to Credit / Debt Management.
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Total Your Monthly Debt

Your debt-to-income ratio is equal to your monthly debt payments divided by monthly income.

DTI = monthly debt / monthly income

The first step in calculating your debt-to-income ratio is determining how much you spend each month on debt.

To start, add up what you spend each month on the following:
  • Mortgage or rent
  • Minimum credit card payments
  • Car loan
  • Student loans
  • Alimony/child support payments
  • Other loans

This is the total amount you spend each month on debt.

Example:

Let's assume Sam has the following expenses:
  • mortgage = $950
  • minimum credit card payments = $235
  • car loan = $355
$950 + $235 + $355 =
Sam's total monthly debt payments = $1,540
  1. Introduction: Calculating Your Debt To Income Ratio
  2. Total Your Monthly Debt
  3. Total Your Monthly Income
  4. Calculate Your Debt To Income Ratio
  5. What Your Debt To Income Ratio Means

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