How Much Debt

The debt-to-income ratio is calculated by:

• dividing your fixed monthly debt expenses by your gross monthly income.
  
  

As a basic rule, you should live within the following percentages:

• monthly housing debt expenses including taxes, insurance: 25-28%
• other credit obligations (credit cards, auto loans, student loans, etc.): 10-15%
• your total debt obligations should be around:
  36-40%

Calculating Your Debt-to-Income Ratio:

Input the following data to calculate your debt ratio:

• monthly housing debt/rent expenses including taxes, insurance.
• monthly installment loan payments
• monthly revolving credit line payments
• real estate loan payment on non-income producing property
• alimony and child support
• any tax or legal assessments

Monthly Mortgage or Rent (include escrow payment):
Monthly Auto or Other Installment Loan Payments:
Minimum Monthly Credit Card Payments:
Minimum Credit Line Payments (home equity):
Monthly Real Estate Non-Income Loan Payments:
Monthly Alimony and Child Support Payments:
Monthly Tax and Legal Assessments:
Monthly Other Payments:
Monthly Gross Salary or Pay:
Annual Bonus:
Monthly Alimony / Child Support:
Other Monthly Income:
Monthly Debt Payments:
Monthly Gross Income:
Debt-to-Income Ratio (should be around 36%):	%
Debt Ratio Barometer: 36% or less: debt level within acceptable range for most people. 37%-42%: debt level a little high, need to take corrective action to bring debt level down. You may consider paying off or consolidating some of your debt. 43%-50%: danger level, need to take immediate action before you lose control of your financial situation. 50% or more: excessive debt loan, may need to seek credit counseling services