Debt To Income Ratio Calculator

Quickly calculate your debt to income ratio with the Financial Brawn debt to income ratio calculator. The debt to income ratio is used in bank lending to calculate an applicant’s ability to meet the monthly payment obligations of the new loan.


Debt to Income Ratio: %

On This Page

  • Debt To Income Ratio Use
  • Debt To Income Ratio Formula
  • Debt To Income Ratio and Applying For A Home Loan

Debt To Income Ratio Usage

The debt to income ratio is a very common ratio used by lenders in the consumer loan space.  These types of loans could include:

  • Basic consumer loans
  • Credit Cards
  • Mortgages

Most lenders have a set of guidelines when determining the credit extended to applicants and the debt to income ratio is one of the data points used in making lending decisions.

Debt To Income Ratio Formula

The debt to income ratio formula is quite simple and is a basic ratio:

R = Debt Amount / Income

Debt To Income Ratio and Applying For A Home Loan

the debt to income ratio is a ratio of all your debt, such as car loans, boat loans and revolving credit card debt divided by your gross income you receive each month.  This percentage is your debt to income ratio.  Looking at this ratio ensures there is a low enough risk for issuing the loan.

One tip is once you’ve been approved for a home loan is to not go charging up your credit cards or purchase a new vehicle as this will change your debt to income ratio and could possibly affect your loan from being processed and you may not qualify anymore at closing as the new debts will be reported to the lender.