## Debt to Income Ratio (D/I)

Here P=monthly debt payments,i=gross monthly income

## $$\frac{p}{i}$$

The formula for the debt to income ratio is the applicant's monthly debt payments divided by his or her gross monthly income. The debt to income ratio is used in lending to calculate an applicant's ability to meet the payments on the new loan. The debt to income ratio may also be referred to as the back end ratio specifically when a new mortgage is requested. The term back end ratio, or total debt to income, is used to differentiate the calculation from the housing debt ratio, also called the f

ENTER THE VARIABLES TO BE USED IN THE FORMULA