Bottom Line Up Front. Your debt-to-income ratio, or DTI ratio, is calculated by dividing your monthly debt payments by your gross monthly income. DTI ratio is important when you're considering a mortgage or buying a car.
Your debt-burden ratio (DBR) is the ratio of your total monthly outgoing payments (including installments towards your loans and credit cards), to your total income. This number is used by banks to calculate your eligibility for loans and credit cards as it shows your current liabilities and your ability to pay back.
The YTD formula typically involves summing a particular metric's total amount from the current year's first day to the reporting day. If it's the income we're talking about, the YTD calculation would be the total income earned from January 1 to the date in question.
The monthly debt payments included in your back-end DTI calculation typically include your proposed monthly mortgage payment, credit card debt, student loans, car loans, and alimony or child support. Don't include non-debt expenses like utilities, insurance or food.
Specifically, it's the percentage of your gross monthly income (before taxes) that goes towards payments for rent, mortgage, credit cards, or other debt.
Year to Date Return
Calculate a YTD return on investment by subtracting its value on the first day of the current year from its current value. Then divide the difference by the value on the first day and multiply the product by 100 to convert it to a percentage.
Here are the simple formulas for calculating your gross annual income: Gross annual income = gross monthly pay x 12. Gross annual income = gross weekly pay x 52. Gross annual income = gross semimonthly pay x 24.
A good return on investment is generally considered to be around 7% per year, based on the average historic return of the S&P 500 index, adjusted for inflation. The average return of the U.S. stock market is around 10% per year, adjusted for inflation, dating back to the late 1920s.
A company's debt ratio can be calculated by dividing total debt by total assets. A debt ratio of greater than 1.0 or 100% means a company has more debt than assets while a debt ratio of less than 100% indicates that a company has more assets than debt.
The Annual Income Debt-to-Earnings Ratio is calculated by dividing the annual loan payment amount by the greater of the mean or median annual earnings. The Discretionary Income Rate is calculated by dividing the annual loan payment by the discretionary income.
The monthly payment on a $100,000 loan ranges from $1,367 to $10,046, depending on the APR and how long the loan lasts. For example, if you take out a $100,000 loan for one year with an APR of 36%, your monthly payment will be $10,046.
Most traditional mortgage lenders require a maximum household expense-to-income ratio of 28% and a maximum total debt-to-income ratio of 36% for loan approval.
Reveals the percentage of current income earned per share. The income ratio can be used as a gauge of how much of the total return comes from income. A high income ratio suggests that the fund depends on dividend distributions or coupon payments to fill out its total return.
Formula: (Net Income / Revenue) x 100. Purpose: Represents the percentage of revenue that translates into net profit after all expenses, including taxes. It provides a comprehensive view of profitability.
The difference between the total revenue generated and the total expenses is known as the net income formula. It is given as: Net Income = Total Revenue - Total Expenses.
First, to find your annual pay, multiply your hourly wage by the number of hours you work each week and then multiply the total by 52. Now that you know your annual gross income, divide it by 12 to find the monthly amount.
To calculate the Year-to-Date income, multiply the monthly income by the number of months that have passed in the year.
For example, you can use the formula =YEAR(DATEVALUE(A1)).
This is the total pre-tax income that you have received so far this year. The YTD figure on your payslip should include overtime, bonuses and allowances. This field is required and should be a number.
Read our editorial guidelines here . Your debt-to-income (DTI) ratio is how much money you earn versus what you spend. It's calculated by dividing your monthly debts by your gross monthly income. Generally, it's a good idea to keep your DTI ratio below 43%, though 35% or less is considered “good.”
Monthly Payments Not Included in the Debt-to-Income Formula
Many of your monthly bills aren't included in your debt-to-income ratio because they're not debts. These typically include common household expenses such as: Utilities (garbage, electricity, cell phone/landline, gas, water) Cable and internet.
If your monthly income is $2,500, your DTI ratio would be 64 percent, which might be too high to qualify for some credit cards. With an income of roughly $3,700 and the same debt, however, you'd have a DTI ratio of 43 percent and would have better chances of qualifying for a credit card.