PTI Ratio Calculator

Calculate PTI Ratio



Formula

The formula to calculate the PTI Ratio is:

\[ PTI = \frac{MP}{MI} \times 100 \]

Where:

PTI Ratio Definition

The PTI (Payment to Income) Ratio is calculated by dividing the monthly payments by the monthly income, then multiplying by 100. This ratio helps in understanding the proportion of income that goes towards paying off debts or other financial obligations.

Example Calculation

Let's consider an example:

Using the formula to calculate the PTI Ratio:

\[ PTI = \frac{1500}{5000} \times 100 = 30\% \]

This demonstrates that with a monthly payment of $1,500 and a monthly income of $5,000, the PTI Ratio would be 30%.