Enter the maximum debt ($) and the total income ($) into the Calculator. The calculator will evaluate the Max Debt Ratio. 

Max Debt Ratio Formula

MDR = MD / I *100

Variables:

  • MDR is the Max Debt Ratio (%)
  • MD is the maximum debt ($)
  • I is the total income ($)

To calculate Max Debt Ratio, divide the maximum debt by the total income, then multiply by 100.

How to Calculate Max Debt Ratio?

The following steps outline how to calculate the Max Debt Ratio.

  1. First, determine the maximum debt ($). 
  2. Next, determine the total income ($). 
  3. Next, gather the formula from above = MDR = MD / I *100.
  4. Finally, calculate the Max Debt Ratio.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

maximum debt ($) = 1000

total income ($) = 3000