Debt-to-income ratio
Monthly required debt payments divided by monthly gross income.
How this works
Debt-to-income percentage = total monthly required debt payments ÷ monthly gross income × 100. Use the same monthly period for both inputs; gross income means income before taxes and other deductions.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The defaults give $1,800 ÷ $6,000 × 100 = 30%. With all reset-default inputs, debt-to-income ratio: 30%.
- Monthly debt payments ($)
- 1800
- Monthly gross income ($)
- 6000
- Debt-to-income ratio
- 30%
Scope and assumptions
This reports a ratio only. It does not decide lending eligibility or recommend an acceptable debt level; lenders and loan products can use different inclusion rules and limits. Income must be greater than zero.
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