Advertisement

📊 Debt-to-Income Ratio Calculator

Calculate your debt-to-income (DTI) ratio instantly. Lenders use your DTI to assess loan eligibility — know where you stand before applying for a mortgage or loan.

Monthly Debt Payments

DTI Formula

DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

Use your gross (pre-tax) monthly income. Include all recurring minimum debt payments.

How to Use This Calculator

  1. 1
    Enter Each Monthly Debt Payment
    Include minimum payments for mortgage/rent, car loans, credit cards, student loans, and any other recurring debts.
  2. 2
    Enter Your Gross Monthly Income
    Use your pre-tax income. If paid annually, divide by 12.
  3. 3
    Read Your DTI Ratio
    Your DTI % and category (Excellent, Good, Fair, or Poor) appear instantly.
  4. 4
    Take Action
    If your DTI is high, consider paying down debt or increasing income before applying for a loan.

Real-World Example

Monthly debts: Mortgage $1,200 + Car $350 + Credit Cards $150 = $1,700. Gross income: $5,500/month.

DTI = ($1,700 ÷ $5,500) × 100 = 30.9%
Category: Good (20–35%)
Most lenders will approve a mortgage at this DTI.

Frequently Asked Questions

Below 20% is excellent, 20-35% is good, 36-43% is fair (lenders may still approve), and above 43% is poor — most lenders will not approve a qualified mortgage above 43%.

Yes. Your current rent or mortgage payment should be included as part of your monthly debt obligations.

Use your gross (pre-tax) monthly income from all sources — salary, freelance, rental income, etc.

Pay down existing debts (especially high-balance ones), avoid taking on new debt before applying for a loan, or increase your income.

No. Credit utilization is the percentage of revolving credit you're using. DTI compares all monthly debt payments to your income.

Related Calculators