⚖️ Debt-to-Income Ratio Calculator
Calculate your DTI ratio to assess your financial health
💰 Monthly Income
Your income before taxes and deductions
💳 Monthly Debt Payments
📊 Your Debt-to-Income Ratio
Total Monthly Income
$0
Total Monthly Debts
$0
📖 How to Use This Calculator
Your Debt-to-Income (DTI) ratio is a key metric lenders use to evaluate your borrowing risk. It compares your monthly debt payments to your gross monthly income.
🔹 Step-by-Step Guide:
- Enter Gross Monthly Income - Your income before taxes/deductions
- Add All Monthly Debt Payments Including:
- Rent or mortgage payments
- Auto loans/leases
- Credit card minimum payments
- Student loans
- Other recurring debts
- Click Calculate - See your DTI ratio and financial assessment
💡 Tip: Most lenders prefer DTI below 36%, with no more than 28% going toward housing. Aim for <35% for financial flexibility.
❓ Debt-to-Income Ratio FAQs
Q: What's a good DTI ratio?
A: Ideal is ≤35%. 36-43% may qualify but limits options. ≥44% often faces loan denials. Mortgage lenders typically require ≤43% for qualified mortgages.
Q: What debts are included in DTI?
A: Include all recurring monthly debts: housing, auto loans, credit cards, student loans, personal loans, alimony/child support. Not included: utilities, insurance, taxes, discretionary spending.
Q: How can I improve my DTI ratio?
A: 1) Increase income, 2) Pay down debts, 3) Avoid new debts, 4) Refinance to lower payments, 5) Extend loan terms (temporarily helps DTI but costs more long-term).
Q: Is front-end or back-end DTI more important?
A: Lenders look at both. Front-end (housing costs only) ideally ≤28%. Back-end (all debts) ideally ≤36%. This calculator shows back-end DTI.
Q: Does DTI include future mortgage payments?
A: When applying for a mortgage, lenders will include the projected payment in your DTI calculation alongside current debts.
Q: How often should I check my DTI ratio?
A: Check whenever: 1) Planning major purchases, 2) Applying for credit, 3) Experiencing income changes, or 4) At least annually as part of financial checkups.