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Finance·1 min read·

Debt-to-income ratio

Divide monthly debt payments by monthly income and show the ratio as a percent.

The answer

Debt-to-income = monthly debt payments ÷ monthly income × 100. What is left is the income minus those payments. The ratio is arithmetic. A lender’s limit is the lender’s rule.

Result

30.00%

Debt-to-income ratio

Income left after these debts
$3,500.00

This is not financial, tax, or legal advice.

How this works

Add the monthly payments you want in the ratio, and divide by the monthly income. Multiply by 100. $1,500 of payments and $5,000 of income is 30%. The remainder is $3,500.

Include a payment only if you want it in this ratio. Rent, a car loan, and a minimum credit-card payment are common pieces. A lender may ignore some of them and add others. This page divides the two numbers you type.

Examples

  • $1,500 of payments and $5,000 of income

    The ratio is 30%. $3,500 is left.

Common mistakes

  • ×

    Using yearly income without dividing by 12.

  • ×

    Reading the percent as an approval.

Frequently asked questions

Is 30% a passing score?

It is the figure for these inputs. A lender publishes its own limit, and this page does not apply one.

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