Debt-to-income ratio (DTI) is a simple measure used in loan planning. It shows what percentage of a person’s gross monthly income goes toward debt payments.
The formula is:
DTI = Total Monthly Debt Payments ÷ Gross Monthly Income × 100
For example, if monthly debt payments are $1,500 and gross income is $5,000:
$1,500 ÷ $5,000 × 100 = 30%
When building a DTI calculator, the main inputs are monthly income and recurring debt payments. The calculator should validate the values, calculate the percentage, and clearly explain that lender requirements can vary.
I created a simple online tool for checking this calculation:
https://calccove.online/calculators/debt-to-income-ratio-calculator
A calculator like this can help users understand their current debt position before applying for another loan.
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