Calculation type: Finding what percentage one number (your monthly debt payments) is of another (your monthly income).
How to use the calculator: Use the
Part-to-Whole Percentage Calculator (“What percentage of B is C?”). Enter the monthly income $
5000
[B] and the monthly debt payments $
1500 [C]. It will calculate what percentage $
1500 is of $
5000.
The formula:
Formula: (Monthly debt payments / Monthly income) × 100%
DTI = ($
1500 / $
5000) × 100% =
0.3 × 100%
= 30%