Debt To Income Ratio Calculator
Calculate your debt-to-income (DTI) ratio, a key metric used by lenders to assess your borrowing risk. See if you qualify for a mortgage or other loans.
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Understanding the Debt-to-Income (DTI) Ratio Calculator
The Debt-to-Income (DTI) Ratio Calculator is a crucial financial tool that helps you understand your financial health from a lender's perspective. It measures the percentage of your gross monthly income that goes towards paying your monthly debt payments. Lenders use this ratio as a key indicator of your ability to manage monthly payments and repay new debt.
How to Use the Calculator
To calculate your DTI ratio, you need to provide two main pieces of information:
- Gross Monthly Income: Your total monthly income before any taxes or deductions are taken out.
- Total Monthly Debt Payments: The sum of all your required monthly debt payments, including rent/mortgage, car loans, student loans, personal loans, and minimum credit card payments.
The calculator will then compute your DTI ratio and provide a general interpretation of what it means for your borrowing potential.
Frequently Asked Questions (FAQ)
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