Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio to assess financial health and loan eligibility
About this calculator
The Debt-to-Income Ratio Calculator helps you determine what percentage of your monthly gross income goes toward debt payments. This crucial financial metric is used by lenders to evaluate your creditworthiness and ability to manage additional debt. A lower DTI ratio indicates better financial health and increases your chances of loan approval for mortgages, auto loans, and other credit products. Understanding your DTI ratio empowers you to make informed financial decisions and improve your borrowing capacity.
How to use
Enter your total monthly gross income before taxes and deductions. Then input all your monthly debt payments including credit cards, loans, and mortgage payments. The calculator will instantly compute your debt-to-income ratio as a percentage, showing you where you stand financially.
Frequently asked questions
What is a good debt-to-income ratio?
Generally, a DTI ratio below 36% is considered good, with no more than 28% going toward housing expenses for optimal financial health.
What debts should I include in the calculation?
Include all monthly debt payments: mortgage, rent, credit cards, auto loans, student loans, personal loans, and minimum required payments.
Do lenders use DTI ratios for loan approval?
Yes, most lenders use DTI ratios as a key factor in loan approval decisions, with many requiring ratios below 43-50%.