LifeCost

More in Legal & Catastrophe

What this calculator does

Co-signing makes you responsible if the borrower defaults. This calculator shows the impact on your DTI and what a missed payment could do to your score.

The math

New DTI = (existing debt + co-signed loan) ÷ gross income. If DTI > 40%, a warning appears. A missed payment subtracts a fixed 80 points from the score.

Worked example

Adding a $20,000 loan to $500 existing debt with $50,000 income raises DTI to 41%, triggering a warning.

Why this matters

Legal and medical bills are stressful and opaque. This calculator gives you a starting number and a concrete next question to ask.

Methodology and transparency

This page publishes the exact formula used to compute the result, so you can verify it in a spreadsheet or check the assumptions against your own situation. The worked example uses the tool default inputs; change any number and the result updates live in your browser. No data is sent or stored.

Common questions

Should I ever co-sign?

Only if you are prepared to pay the full loan yourself.

Can I remove myself from a co-signed loan?

Usually only if the borrower refinances alone or the loan is paid off.

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