📊 Debt-to-Income Ratio Calculator
Calculate your DTI ratio
Mortgage, car loans, credit cards, student loans, etc.
Before taxes and deductions
How to Use This Calculator
Enter Monthly Debt Payments
Input your total monthly debt payments, including mortgage/rent, car loans, credit cards, student loans, and other monthly debt obligations.
Enter Gross Monthly Income
Enter your total monthly gross income (before taxes and deductions). This is your income before any deductions.
Review DTI Ratio
See your debt-to-income ratio as a percentage, along with what this means for your financial health and loan qualification. Lower DTI is generally better.
Formula
DTI Ratio = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
Example Calculation:
If monthly debt is $2,000 and monthly income is $6,000:
• DTI Ratio = ($2,000 ÷ $6,000) × 100 = 33.3%
• This is considered good (under 36%)
About Debt-to-Income Ratio Calculator
The debt-to-income (DTI) ratio is a key financial metric that compares your monthly debt payments to your monthly gross income. It's expressed as a percentage and is used by lenders to assess your ability to manage monthly payments and determine loan eligibility. A lower DTI ratio indicates better financial health and ability to take on additional debt. This calculator helps you calculate your DTI ratio and understand what it means for your financial situation.
When to Use This Calculator
- Loan Pre-qualification: Check if you meet lender DTI requirements
- Financial Health Assessment: Understand your overall debt situation
- Budget Planning: Plan your debt and income management
- Mortgage Planning: Determine if you qualify for a mortgage
Understanding DTI Ratio
- Calculation: Monthly debt payments ÷ Monthly gross income × 100
- Good DTI: Under 36% is generally considered good
- Acceptable DTI: 36-43% is acceptable for many lenders
- High DTI: Over 43% may limit loan options
- Lender Guidelines: Most lenders prefer DTI under 43%
Why Use Our Calculator?
- ✅ Quick Calculation: Instantly see your DTI ratio
- ✅ Loan Qualification: Understand if you meet lender requirements
- ✅ Financial Health: Assess your overall debt situation
- ✅ Planning Tool: Plan for loan applications and debt management
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is a good debt-to-income ratio?
A good DTI ratio is under 36%. DTI under 36% is considered excellent, 36-43% is acceptable for most lenders, 44-50% is high and may limit options, and over 50% is very high and may prevent loan approval.
What debt payments are included in DTI?
DTI includes: mortgage/rent, car loans, credit card minimum payments, student loans, personal loans, and other monthly debt obligations. It does not include utilities, insurance, or other non-debt expenses.
How can I improve my DTI ratio?
Improve DTI by: (1) Paying down debt to reduce monthly payments, (2) Increasing income, (3) Avoiding new debt, (4) Consolidating debt to lower payments, (5) Extending loan terms (though this increases total interest).
What DTI do lenders require?
Lender requirements vary: Conventional loans typically require DTI under 43-45%, FHA loans allow up to 43% (sometimes 50%), VA loans allow up to 41%. Lower DTI generally means better rates and terms.