If your gross monthly income is $4,000 and your total monthly debt payments are $1,200, what is your debt-to-income ratio?*30%25%35%40%
Question
If your gross monthly income is 1,200, what is your debt-to-income ratio?*30%25%35%40%
Solution
To calculate your debt-to-income ratio, you need to divide your total monthly debt payments by your gross monthly income, then multiply by 100 to get a percentage.
Here's the step-by-step calculation:
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Divide your total monthly debt payments by your gross monthly income. In this case, that's 4,000, which equals 0.3.
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Multiply by 100 to get a percentage. 0.3 times 100 equals 30.
So, your debt-to-income ratio is 30%.
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