• Annual gross salary
  • Bonuses and overtime
  • Other income
  • Alimony received


  • Monthly mortgage or rent
  • Minimum monthly credit card payments
  • Monthly car loan payments
  • Other loan obligations
  • Monthly Income
  • Monthly Debt Payments
  • Debt to income ratio


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

36% or less
This is an ideal debt load to carry for most people. Showing that you can control your spending in relation to your income is what lenders are looking for when evaluating if you are credit-worthy.

37% to 42%
Your debts still may seem manageable, but start paying them down before they begin to spiral out of control. At this level, credit cards still may be easy to obtain, but acquiring loans may be more difficult.

43% to 49%
Your debt ratio is high and financial difficulties may be looming unless you take immediate action.

50% or more
Seek professional help to make plans for drastically reducing your debt before it becomes a real problem.

Once you’ve determined your debt-to-income ratio, if the result is less than desirable, give us a call today at 800.405.6035 or complete our rate form to speak with one of our factoring specialists to learn how invoice factoring can positively impact your DTI ratio.