Insolvency Calculator

The Insolvency Calculator calculator can be used to determine your debt-to-income ratio, which is a key indicator of financial health and insolvency risk.

Input Parameters

Calculation Results

Debt-to-Income Ratio

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Where:
Debt-to-Income Ratio = (Total Monthly Debt / Gross Monthly Income) * 100

Insolvency Calculator Calculator Usage Guide

Learn how to use the Insolvency Calculator calculator and its working principles

How to Use the Insolvency Calculator

  1. Enter your total monthly debt payments in the first input field.
  2. Enter your gross monthly income in the second input field.
  3. Click the "Calculate" button to compute your debt-to-income ratio.
  4. The result will be displayed as a percentage.

Understanding the Debt-to-Income Ratio

The debt-to-income (DTI) ratio is a financial metric that compares your monthly debt payments to your gross monthly income. It helps lenders and financial analysts assess your ability to manage monthly debt payments. A higher DTI ratio indicates a higher risk of financial distress.

Healthy DTI Ratios:

  • < 36%: Generally considered healthy
  • 36% - 43%: May indicate some financial stress
  • > 43%: High risk of financial distress