What is the formula to use to calculate the debt-to-income ratio?

income + debt /100
income/debt x 100
debt / income x 100
debt x income

debt/income*100 (to find percentage)

Explanation:

By dividing the debt by the income, you get a value that represents a comparison between these 2 values, debt and income, in fraction form. Convert this to a decimal, and the number of dollars of debt per dollar of income is outputted. Multiply by 100, and a percent of debt to income will be the output.

NO- debt*income

This solution does not work. If you multiply debt by income, it will not be a ratio - in this case, a fraction representing the debt compared to your income.

NO- (income/debt)*100

If someone divides income by debt, then the ratio will represent the amount of dollars in income per dollar of expense (debt). It is supposed to be the other way around.

NO- (income + debt)*100

As said in the first NO explanation, it is not a ratio or value showing the relationship between debt and income.

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