# Calculation of the debt ratio: simulator online 100% free

## Debt ratio: why calculate it?

The debt ratio is one of the key data to study if you want to take a loan . Based on this indicator, the conditions for granting your loan may change. This is why it is important to simulate the debt ratio before taking out a consumer or real estate credit . Our debt ratio calculator gives you the information you need, with ease and without commitment.

The debt ratio makes it possible to know the share of your monthly income allocated to the payment of the installments of your various loans. The calculation of the debt ratio is therefore essential if you want to finance a project with a loan . It will verify that the new deadlines that will generate this loan will not hurt your overall financial situation.

## How to calculate your debt ratio for a loan?

The calculation of the debt ratio is simple. You need to start by listing your different sources of income as well as your fixed costs . If you take out the loan with two, do not forget to list the expenses and income of the two co-owners of the loan.

Several elements can be taken into account for the income :

• your profits, if you have an unpaid activity;
• your other potential sources of regular income: rents, annuities, pensions, etc.

Note : sickness benefits and exceptional bonuses are not taken into account. In addition, some financial organizations do not include allocations in the calculation of the debt ratio.

For expenses :

• You have to add up all the regular expenses like your rent for example, any pension payments, etc.
• Also remember to include all the monthly payments of your credits in repayment, if you have any.

Then you simply divide the sum of your recurring expenses by the amount of your income .

Finally, multiply the result by 100 . This will give you a percentage of your debt ratio.

## How our debt ratio simulator works

Thanks to our simulator, you just have to fill in some information and the calculation of your debt ratio will be done automatically.

At the level of your resources:

• Are you alone at work or does your household have two sources of income?
• How much are your professional earnings (net wages and potential bonuses)?
• Do you have other sources of regular income (rents for example)? If so, how much are they?

At the level of your expenses:

• What is the amount of your rent if you have one?
• Do you pay back a mortgage and / or consumer loans and if so, how much are their monthly payments?
• Do you have other current expenses (alimony for example)?