HOW TO CALCULATE DEBT TO INCOME RATIO

Do you know how to calculate debt to income ratio? You will usually need to know how to calculate debt to income ratio when you are applying for credit of any kind.

HOW TO CALCULATE DEBT TO INCOME RATIO IN 5 EASY STEPS! ADD UP ALL OF YOUR MONTHLY INCOME SOURCES

It’s important to know your monthly income for several reasons, but you definitely need to know this in order to calculate your debt to income ratio.

HOW TO CALCULATE DEBT TO INCOME RATIO IN 5 EASY STEPS!

ADD UP ALL OF YOUR MONTHLY INCOME SOURCES It’s important to know your monthly income for several reasons, but you definitely need to know this in order to calculate your debt to income ratio.

LIST ALL OF YOUR MONTHLY FINANCIAL OBLIGATIONS

You will need to know your monthly payments for all debts, rent or mortgage payments, and any other large payment you make each month.

DIVIDE THE TOTAL DEBT BY YOUR INCOME

You will use your gross monthly income, which is your monthly income before taxes. The number you get will be a percentage.

ANALYZE YOUR DEBT TO INCOME RATIO The lower the percentage number, the less risky you are considered to lenders.