Question

You have an annual salary of $85,063. Your monthly expenses include a $1,555 mortgage payment, a $274 car lease payment, $139 in minimum credit card payments, and a $179 payment on your student loan. Calculate your DTI (debt-to-income) ratio as a PERCENTAGE

Answer 1

DTI ratio in percentage = 30.29%

Explanation:

Annual salary = $85,063

This means that gross monthly pay = 85063/12 = $7088.58

Now,

Total monthly debt payments = 1555 + 274 + 139 + 179 = $2147

Debt to income ratio = (2147/7088.58) × 100% = 30.29%