Enter the monthly debt payments ($) and the monthly take-home pay ($) into the Debt Safety Ratio Calculator. The calculator will evaluate and display the Debt Safety Ratio.
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Debt Safety Ratio Formula
The following formula is used to calculate the Debt Safety Ratio.
DSR = MD / MTH *100
- Where DSR is the Debt Safety Ratio (%)
- MD is the monthly debt payments ($)
- MTH is the monthly take-home pay ($)
How to Calculate Debt Safety Ratio?
The following example problems outline how to calculate Debt Safety Ratio.
Example Problem #1:
- First, determine the monthly debt payments ($).
- The monthly debt payments ($) is given as: 2,500.
- Next, determine the monthly take-home pay ($).
- The monthly take-home pay ($) is provided as: 5,000.
- Finally, calculate the Debt Safety Ratio using the equation above:
DSR = MD / MTH *100
The values given above are inserted into the equation below and the solution is calculated:
DSR = 2,500 / 5,000 *100 = 50.00 (%)
Example Problem #2:
For this problem, the variables required are provided below:
monthly debt payments ($) = 6,000
monthly take-home pay ($) = 10,000
Test your knowledge using the equation and check your answer with the calculator above.
DSR = MD / MTH *100 = ?
