How do you calculate your debt to income ratio??

Answer 1

Excellent question! First, figure out your gross income. (I know it makes more sense to use net, but lenders usually go by gross).
Add up all of your expenses. When I say "expenses" I mean everything that you pay on a monthly basis that does not have anything to do with survival. Include:
~Student loans
~Car loans
~Personal loans
~Credit card debt
~Cell phone bill (unless you use it as a home phone)
~Cable
Don't include "necessities" such as rent, gas/electric, car insurance, food, health insurance, water, etc.

After you have the two figures, divide the expenses by your income. For example, if I make $1800/mo and my expenses are $900/mo....1800 divided by 900 is .50, or 50% debt-to-income.
I hope that helps! :-)

Answer 2

total up all of the monthly payment on any debts that would be reported to the credit bureau and divide it by your income

Answer 3

Its normally a monthly thing....

So, add up all your payments

mortgage ( or rent ) plus taxes and insurance per month and then add up credit card min payments and other debt payments,like car or other loans--divide by gross montly pay

If you own, they say up to 45% is fine and if you rent it shuld be less then 40%

Answer 4

The way lenders do it is they take all the monthly payments that show on your credit bureau and add $100.00 a month for insurance and $300.00 to $400.00 for rent depending on the bank unless you own then they use whatever amount shows on your bureau for your mortgage payment. They them divide the total by your gross monthly income.

Iceman is right, if you own 45% if you rent 40% is the most you want to be at.

Answer 5

divide your debt by your income. Duh.