Kurtis is expecting a promotion which, hopefully, comes with a raise. He would like his raise to help him correct a high debt-to-income (DTI) ratio of 43%. His current annual salary is $53,000. How much of a raise would Kurtis need applied to his annual salary to get his DTI ratio down to a more reasonable 36%?

DTI is monthly debt payments divided by income. If Kurtis’s debt payments stay the same, the income needed for a 36% DTI is $53,000 × 43% ÷ 36% ≈ $63,305. Subtract his current salary: $63,305 − $53,000 ≈ $10,305, so he needs a raise of about $10,305. The $63,305 figure is his target annual salary, not the raise.

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