Financial Calculators
Debt To Income Ratio Calculator
The debt to income calculator, or DTI calculator for short, is an invaluable tool for anyone who has taken out any type of loan. This calculator will show you how much debt you have and whether you can afford another loan.
debt to income ratio calculator
Simple
Advanced
$ / month
$ / month
Debt-To-Income Ratio
? %
Table of contents
◦How do you calculate the debt-to-income ratio? |
◦Interpreting the results |
How do you calculate the debt-to-income ratio?
DTI (debt-to-income) is a measure how indebted you actually are. It is calculated in relation to your regular income. A $200 monthly payment can be burdensome for some people, but millionaires will not notice it.
Mathematically, DTI can be described as your monthly debt (recurring each month), expressed in percent.
DTI = debt / income * 100%
If you earn $2000 per month and your monthly car loan payment is $500, your DTI can be calculated as follows:
$500 / $2000 * 100% = 25%
You can also use the advanced calculator to determine if you are eligible for an additional loan. As an example, let's assume your bank allows you to have maximum DTI of 33%. You can easily determine the maximum loan amount by calculating your monthly debt (currently $500) and your income.
33% * $2000 = $660 is the maximum total amount of debt.
$660 - $500 = $160 is the additional loan that you are allowed to take.
Interpreting the results
Once you have an idea of what your DTI is, it's time to evaluate the result. The lower the DTI, the better. After all, you want to spend as little as possible on your debts. The following guidelines can be used if you are unsure:
Article author
Parmis Kazemi
Parmis is a content creator who has a passion for writing and creating new things. She is also highly interested in tech and enjoys learning new things.
Debt To Income Ratio Calculator English
Published: Thu Jul 07 2022
In category Financial calculators
Add Debt To Income Ratio Calculator to your own website
Debt To Income Ratio Calculator in other languages
Calculadora De Rácio Dívida/rendaCalculadora De La Relación Deuda-ingresoКалькулятор Отношения Долга К Доходуحاسبة نسبة الدين إلى الدخلCalculateur De Ratio Dette/revenuSchulden-Einkommens-Verhältnis-Rechner負債対所得比率計算機आय अनुपात कैलकुलेटर के लिए ऋणBorç Gelir Oranı HesaplayıcısıKalkulator Rasio Utang Terhadap Pendapatan