How to Calculate the TDS Per Month

Calculate your monthly TDS.

Your TDS (total debt service) is a measure of your financial situation in terms of debt. It takes into account your gross monthly salary as well as your loan payments and other expenses. A TDS lower than 40 percent suggests a suitable level of debt. It is a good time to go house hunting or apply for a loan if your total debt service falls below this benchmark.

Things You'll Need

• Pay stubs
• Billing statements
• Pencil and paper
• Calculator

Instructions

1. Add up all monthly payments related to housing. These may include your mortgage, property taxes, utility bills, condo fees or other payments.

2. Add up all other monthly payments related to debt, such as car loan, student loan, personal loan and credit card expenses.

3. Add the housing and other debt sums together. This is your total monthly debt.

4. Divide the total monthly debt by your monthly gross income and then multiply by 100. This will yield your TDS as a percentage.

References

• Investopedia: Total Debt Service Ratio - TDS
• Lending Max: Understand GDS and TDS
• Canada Mortgage and Housing Corp.: Are You Financially Ready?

Resources

• Fiscal Agents: The Mortgage Debt Services Ratios Calculator