Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio to assess financial health
About this calculator
A debt-to-income ratio calculator helps you determine what percentage of your monthly gross income goes toward debt payments. This critical financial metric is used by lenders to evaluate your creditworthiness and ability to manage additional debt. Understanding your DTI ratio is essential for making informed decisions about loans, mortgages, and overall financial planning. Most lenders prefer a DTI ratio below 36%, with housing costs not exceeding 28% of your income.
How to use
Enter your total monthly gross income before taxes and deductions. Then input all your monthly debt payments including credit cards, loans, mortgage, and other recurring debt obligations. The calculator will instantly compute your debt-to-income ratio as a percentage, helping you understand your current financial position.
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.
What debts should I include in the calculation?
Include all monthly debt payments: credit cards, auto loans, student loans, mortgage, personal loans, and child support.
Do I use gross or net income?
Always use your gross monthly income (before taxes and deductions) when calculating your debt-to-income ratio.