The goal is to keep your debt at reasonable levels

A ratio? That sounds complicated, but it's just a numerical way to draw a comparison. Here, we're comparing overall housing and debt payments to pre-tax income. Ideally, those monthly payments should total less than 35% of your income. Use this calculator to figure out where you stand - and to see whether you're likely to maintain a solid credit score and qualify for loans you might need.

Information and calculators provided are tools for your use and are not intended to provide financial, investment, legal, tax or accounting advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.