Debt Burden Ratio Calculator for UAE

Discover your financial health with our Debt Burden Ratio Calculator for the United Arab Emirates (DBR Calculator UAE). Quickly assess your debt-to-income ratio and make informed financial decisions. Take control of your finances today!

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DBR Calculator UAE

Get financially confident with our DBR Calculator UAE. Before applying for a personal loan, banks check your DBR to see if you can pay back the loan smoothly. This is a critical parameter that checks your cash flow to see if your income covers all your financial commitments. By comparing your income and expenses, it will see if you can add another payment. Banks lend responsibly to protect themselves and the applicant. If your DBR is more than 50% your loan application may get rejected.

Be in control of your finances by calculating your DBR beforehand and avoid unnecessary loan rejections that can hit your credit score. Educate yourself financially and make informed decisions about your loan eligibility. With our simple Debt to Burden Ratio Calculator you can check your financial health and start your financial journey.

How to use this DBR CALCULATOR?

1. Click here: Start using our DBR Calculator on this page.
2. Enter Your Details: Fill in your monthly income including any additional income in the given fields. Include your salary, rental income, investments or any other income streams.
3. Add Your Debt Payments: Enter your monthly debt payments like mortgage, rent, personal loans, credit card payments, car loans and any other financial obligations you have.
4. Click ‘Calculate’: Once you have entered all the details, click the ‘Calculate’ button to get instant results.
5. See the Results: The calculator will give you your Debt Burden Ratio in percentage. This is the percentage of your income that goes towards debt payments.
6. What it means: A lower ratio is better, a higher ratio means financial stress. Use this to make informed decisions on managing your debts and improving your financial health.
7. Do something: Based on the results, adjust your budget or debt repayment plan to achieve a better DBR. Pay off high interest debts and increase your income to be more financially stable.
8. Repeat as needed: Use the DBR Calculator regularly to track your progress and adjust your financial plan.
9. Contact us: If you have any questions or need personal advice, talk to a financial advisor or counselor.
10. Share: If you like the calculator, share it with your friends and family to help them check their financial health.

How to calculate DBR?

The Debt Ratio is a key financial parameter that shows the percentage of a company’s assets that are financed through debt. It’s calculated by dividing the total debt (short term and long term liabilities) by the total assets (current assets, fixed assets and other assets like goodwill).

This formula can be expressed as

Debt Ratio = Total Debts / Total Assets

Debt Ratio = Total Liabilities / Total Assets.

For instance, if a company possesses $2 million in total assets and $500,000 in total liabilities, its debt ratio stands at 25%. This ratio, also known as the debt-to-asset ratio, illuminates how a company finances its assets. When the ratio is less than 0.5, it indicates that most of the assets are funded through equity. Conversely, if the ratio exceeds 0.5, the majority of the assets are financed through debt. Companies with high debt-to-asset ratios are often termed as highly leveraged, implying increased operational risk. Moreover, a higher ratio may signify reduced borrowing capacity and decreased financial flexibility.

To gain valuable insights, it’s essential to compare a company’s debt ratio with industry benchmarks or competitors. This comparative analysis helps in assessing a company’s financial standing and its debt management strategies effectively.

Reference: Debt ratio Wikipedia and its Formula.

Remember, your Debt Burden Ratio is a valuable metric for assessing your financial well-being, so use it wisely to make informed financial decisions and work toward a healthier financial future.

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