Calculate the debt-to-income ratio (DTI) lenders use to compare recurring monthly debt payments with gross monthly income.
TE MMUAE NO ASE
Ɔkwan bɛn so na wobu eyi?
Use required recurring debt payments and gross income before taxes. Ordinary living expenses are generally excluded, but lender definitions and limits vary.
Debt-to-income ratio formulaDTI = Monthly debt payments ÷ Gross monthly income × 100
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Monthly debt payments of $1,800 and gross monthly income of $6,000 produce a 30% debt-to-income ratio.
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Ɔsram bosea tua
Gross monthly income
Nea wɔabu afi mu
$1,440.00
$7,500.00
19.2%
$1,800.00
$7,500.00
24%
$2,160.00
$7,500.00
28.8%
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Akontaabu nsusuwii
Rates and recurring amounts stay constant for the period represented by the formula.
Inputs use the same monthly or annual time basis stated in each field label.
Taxes, fees and contractual rules are excluded unless the calculator explicitly asks for them.
Sɛnea wobɛte nea afi mu aba no ase
Use the headline as a planning estimate and compare it with the detailed totals.
Run a baseline plus favorable and conservative scenarios before deciding.
Confirm important results against a lender, payroll statement, tax authority or signed contract as applicable.
Mfomso a ɛtaa ba a ɛsɛ sɛ wokwati
Mixing annual rates with monthly amounts or entering a percentage as a decimal.
Leaving out fees, taxes, changing rates or timing differences that apply to the real decision.
Treating approval guidelines, market returns or future appreciation as guarantees.