How to Calculate PTI
- 1). Calculate the amount of your household's gross annual income (before taxes).
- 2). Calculate your monthly gross income by dividing the gross annual income by 12. For example, if your gross annual income is $60,000, your monthly gross income is $5,000.
- 3). Calculate the PTI by dividing the monthly mortgage payment amount by your gross monthly income. If the mortgage payment is $1,475, dividing it by $5,000 equals a PTI of 0.295, or 29.5 percent. In this example, $1,475 is a comfortable mortgage payment amount, given your gross monthly income.
