PARDA Federal Credit Union

Debt-to-Income Ratio

Comparing your earnings against your spending, also known as a debt-to-income ratio, is one of the most popular approaches for evaluating if you have too much debt. For years, lenders have looked at debt-to-income ratios to get a better grasp on a person's current financial picture to determine credit-worthiness.

Use this calculator to calculate your debt-to-income ratio.

Monthly mortgage or rent
Minimum monthly credit card payments
Monthly car loan payments
Other loan obligations
Monthly Debt Payments
Annual gross salary
Bonuses and overtime
Other income
Alimony received
Monthly Income
Debt ÷ Income =

Now that you have calculated your debt-to-income ratio, understanding what it means to you is the next step.

If you're concerned about your credit management, ask someone at your credit union for guidance or for referral to a credit counseling agency.

Provision of this calculator is not an offer of credit. Its use in no way guarantees that credit will be granted. This calculator is solely for informational purposes and provides reasonably accurate estimates; the calculations are not intended to be relied upon as actual loan computations.

Published January 1, 2003, Reviewed March 21, 2011

NCUA Equal Housing Lender
Printed Wednesday, February 10, 2016

  Home & Family FinanceŽ Resource Center
  Copyright © 1997-2015 Credit Union National Association Inc.