Want to know how your business will be evaluated by potential lenders? Our financial calculators will help you understand and compute the most commonly used evaluation metrics.
Debt-to-income ratio (DTI) determines the percentage of a consumer's monthly gross income that goes towards paying debts.
The following formula determines the DTI ratio for businesses involving property:
DTI = Monthly recurring debt expenses (including rental or mortgage expenses, interest and principal payments, OR line 11 + line 13 + principal payments)/monthly gross income