Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio and assess your financial health
About this calculator
The Debt-to-Income Ratio Calculator helps you determine what percentage of your monthly income goes toward debt payments. This essential financial metric is used by lenders to evaluate your creditworthiness and ability to manage additional debt. By calculating your DTI ratio, you can assess your financial health, identify areas for improvement, and make informed decisions about taking on new loans or mortgages. A lower ratio indicates better financial stability and increases your chances of loan approval.
How to use
Enter your total monthly debt payments, including credit cards, loans, and other obligations. Then input your gross monthly income before taxes and deductions. Click calculate to instantly see your debt-to-income ratio as a percentage, along with an assessment of your financial health based on standard lending guidelines.
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. Ratios above 43% may limit loan approval options.
Which debts should I include in the calculation?
Include all monthly debt payments: credit cards, auto loans, student loans, mortgages, personal loans, and any other recurring debt obligations.
Should I use gross or net income?
Use your gross monthly income (before taxes and deductions). This is the standard method lenders use when calculating debt-to-income ratios for loan applications.