How To Calculate Your Debt To Income Ratio

It's not very hard to calculate your debt to income ratio.

all you have to do is make two simple lists and be honest with yourself.

First add up all your montly debt payments:

Monthly mortgage payment
- include property taxes and insurance of the rent if you rent
Monthly home equity line of credit or loan payment
Monthly car payments
Monthly revolving credit payments like furniture, appliance loans, etc.
Monthly student loan payments
Monthly minimum credit card payments times two
Other monthly loan amounts
Monthly child support payments

Next, add up all your monthly income:

Monthly net (take-home) pay
Annual bonuses and overtime, divided by 12
Other annual income, divided by 12

Take the total monthly debt payments and divide it by your total monthly income.

The result if your debt to income ratio

The topic is: Good Credit Management
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Posted by Cre on 12/23/05 1:08 PM

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Subject		Author	Date
Good Credit Management		Topic	12/8
	How To Calculate Your Debt To Income Ratio	Cre	12/23