Debt to income ratio calculation
Date: Thu, 02/25/2010 - 19:01
Should I include expenses like food and telephone when calculating debt to income ratio?
Quote:Originally Posted by AnonymousShould I include expenses li
Quote:
Originally Posted by Anonymous Should I include expenses like food and telephone when calculating debt to income ratio? |
No, normally we exclude grocery expenses while calculating debt to income ratio.
To compute DTI, add up all your income (wages, overtime/bonuses, investment income, alimony/child support) and also your expenses (mortgage/rent payment, credit card payment, utility/other bills, student loan payment, car loan, alimony/child support expenses).
Now divide your total expense by total income. You can take help of the debt to income calculator as well.
