Calculating Debt-to-Income Ratio

If you’re thinking about buying a home, it’s helpful to go ahead and calculate your DTI so you have a good idea of how you’re going into the lending process. You can add up all of your monthly obligations to start.

These include your student loans, car loans, credit card payments, an existing mortgage if relevant, and child support. Then, you divide these monthly payments you’re responsible for by your gross monthly income. Gross monthly income is how much you make every month before taxes and any other deductions.