The two main calculations used to determine how much you can afford to borrow for a loan or a new home purchase are the total debt service ratio (TDS) and gross debt service ratio (GDS). This TDS and GDS Calculator illustrates how each work.
TDS and GDS Calculator
Discover how TDS and GDS work.
Financial professionals can leverage Total Debt Service (TDS) and Gross Debt Service (GDS) ratios as powerful tools to help their clients make informed decisions about their financial health and borrowing capacity. The TDS ratio calculates the percentage of a client’s gross income that goes towards paying all debt obligations, including housing costs and other debts like credit cards and loans. On the other hand, the GDS ratio focuses solely on housing-related expenses as a percentage of gross income. By using these ratios, advisors can provide clients with a clear picture of their current financial situation and help them understand how much debt they can comfortably manage.
TDS and GDS Calculator
Simulate Various Scenarios
When working with clients, advisors can use TDS and GDS calculators to simulate various scenarios and demonstrate the impact of different financial decisions. For example, they can show how taking on additional debt or purchasing a more expensive home might affect the client’s debt service ratios. This approach allows clients to visualize the potential consequences of their choices and make more informed decisions about major financial commitments. Additionally, advisors can use these calculators to help clients set realistic financial goals and develop strategies to improve their debt ratios over time
Additional calculators to help with your planning include:
• Loan Calculator
• Debt Consolidation
• Pay Down Debt or Invest
The calculator can be viewed for free up to five (5) times on this site.
To use the full-featured versions of these calculators in FreshPlan, please contact us.
Companion Infographic
This companion credit score infographic illustrates the factors involved in determining your credit score, and why a good score is important. This infographic is included in FreshPlan.
Features
Consumer-facing and Accessibility
These consumer-facing financial calculators can be embedded in your web site quickly and easily. Complies with web accessibility standards.
Responsive
Calculators are easy-to-use and fully responsive on any device – phone, tablet, laptop or desktop.
Full Branding
Calculators can be fully branded according to your branding style guide. You’ll be up and running with a quick turnaround.