How do I calculate debt service?
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wilburt
Apprentice
Joined: 17 Dec 2007
Posts: 9
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 Posted: 04/20/08 - 09:04 Post subject: |
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| Dear all. I have been reading up about the total debt service ratio, and think it is an interesting and effective concept. It is not something I had ever heard of up until very recently. Could you tell me more about this? In particular, I am hoping to find out how the total debt service ratio is calculated. Thanks. |
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hanson
Apprentice
Joined: 10 Dec 2005
Posts: 5
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| Posted: 05/20/08 - 01:36 Post subject: |
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| There is a simply formula applied to calculate the total debt service ratio or TDS, but despite its simplicity or perhaps exactly because of that, it is also extremely effective. First add up the total mortgage payments (annual) and the due taxes, plus any other debts an individual might have. Divide it by the gross income of the family or household, and there is your answer. |
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