DTI calculator – Use it to work out the figures in an easy way
Debt to income ratio is the percentage amount of a person’s monthly income that you earn which is used to make your monthly debt payments. This number plays a very important role particularly when you are planning to purchase a house or take out a new loan. You may use the debt to income ratio calculator to calculate your DTI ratio.
Debt to income ratio calculator
You use a debt to income ratio calculator to find out the amount of loan that you can afford to manage at a time. The debt to income ratio calculator enables you to calculate the amount that you need to make to your monthly debt payments.
Your debt to ratio is calculated by taking into consideration all your debts which may include mortgage, tax and other housing expenses. The calculator helps you calculate all types of complicated calculations and get accurate results in an easy way that you would find it difficult if you had to do it on your own. When you use a DTI calculator, you have to provide some information such as your monthly housing debt payments, your monthly credit card debt payments, etc. to the calculator. This will show you your DTI ratio.
When you want to take out a loan, the creditors go through your debt to income ratio and find out whether or not you’re eligible to get a loan. At the same time, they also check your credit score and find out whether you can manage your loan and pay it off within a definite time period.
Essential features of debt to income ratio calculator
Go through this article to know about the essential features of debt to income ratio calculator.
- Monthly debt compulsions – These are the debts that you have to pay off every month. These debts may include credit card debt, student loans payment, car payment, child support and any other monthly debt obligations. By adding up all these, you will get to know about your total debt payments that you will have to make every month.
- Calculate your monthly income – You should make it a point to calculate your monthly income. If you get any extra bonuses, then divide it out so that you can get the per month number. At last, add up all your extra income altogether that you earn through dividends and if you have any part time business.
In order to determine your debt to income ratio, you need to add up your total debt payment amount and divide it by your total monthly income. This will help you calculate the debt to income ratio.
It is advisable that when you want to use a debt to income calculator, make it sure that you choose one from an authentic website in order to get the accurate calculations.
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