Crunching the numbers for financial fitness! 💼💡
To calculate your Debt-to-Income Ratio (DTI), divide your total monthly debt payments by your monthly income before taxes and deductions are taken out. Multiply that number by 100 to get your DTI expressed as a percentage.

Here’s an example: A borrower with rent of $1,200, a car payment of $400, a minimum credit card payment of $200 and a gross monthly income of $6,000 has a debt-to-income ratio of 30%. In this example, $1,800 is the sum of all debt payments. When you divide $1,800 by $6,000 and then multiply that answer by 100, you get 30.

Empower yourself with this simple formula to make informed decisions about managing debt and achieving your financial goals!

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