Calculate Your Debt-to-Income Ratio

Why do you need to know it? Because lenders use it as a measure of your ability to repay the money you have borrowed or to take on additional debt like a mortgage or a car loan.

How to Calculate It

Debt-to-income ratio is calculated by dividing your total recurring monthly debt by your gross monthly income.

Start by adding up all of your recurring monthly debts.

Beyond your mortgage, other recurring debts…