Debt-to-Income (DTI) Ratio Calculator

Calculate your debt-to-income (DTI) ratio to assess your financial health and borrowing capacity. This key financial metric compares your monthly debt payments to your gross monthly income, helping lenders evaluate your ability to manage monthly payments and repay debts.

Incomes (Before Tax)
Salary & Earned Income
Pension & Social Security
Investment & Savings
interest, capital gain, dividend, rental income…
Other Income
gift, alimony, child support…
Debts / Expenses
Rental Cost
Mortgage
Property Tax
HOA Fees
Homeowner Insurance
Credit Cards
Student Loan
Auto Loan
Other Loans and Liabilities
personal loan, child support, alimony, etc.
Please enter a valid positive income to calculate the DTI ratio.
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Result

0% 35% Good 43% Acceptable 50%+

Detailed Steps

Visual Representation

Formula

Debt-to-Income Ratio Definition

The debt-to-income ratio is calculated by dividing your total monthly debt payments by your gross monthly income:

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

Interpretation

  • DTI ≤ 35%: Looking good – Your debt is at a manageable level relative to your income. You likely have money left over for saving or spending after you’ve paid your bills.
  • DTI 36%-43%: Acceptable – You’re managing your debt adequately, but consider reducing some debts before taking on more.
  • DTI > 43%: High – Your debt load is high relative to your income. This may make it difficult to get approved for new loans, and you should consider taking steps to reduce your debt.

How to Use the Debt-to-Income Ratio Calculator

  1. Enter your income sources in the “Incomes” section (salary, pension, investments, and other income).
  2. Select whether each income amount is annual (yearly) or monthly.
  3. Enter your debt payments in the “Debts/Expenses” section (rent, mortgage, credit cards, loans, etc.).
  4. Select whether each debt payment is monthly or yearly.
  5. Click the “Calculate” button to determine your debt-to-income ratio.
  6. View your results in your chosen display format, showing your DTI percentage and its interpretation.

Frequently Asked Questions (FAQs)

What is a debt-to-income ratio?

The debt-to-income (DTI) ratio is a personal finance measure that compares your total monthly debt payments to your gross monthly income. It’s expressed as a percentage and is used by lenders to assess your ability to manage monthly payments and repay debts.

How can I calculate my debt-to-income ratio?

To calculate your DTI ratio:

  1. Add up your monthly debt payments (mortgage/rent, credit cards, car loans, student loans, etc.)
  2. Calculate your gross monthly income (before taxes and deductions)
  3. Divide your total monthly debt by your gross monthly income
  4. Multiply the result by 100 to get a percentage

What is a good debt-to-income ratio?

Generally, a good debt-to-income ratio is:

  • 35% or less: Looking good – Your debt is at a manageable level relative to your income.
  • 36% to 43%: Acceptable – Most lenders consider this an acceptable range, though you should try to lower your DTI.
  • Above 43%: High – This may make it difficult to get approved for new loans, particularly mortgages.

What debts should I include in my DTI calculation?

Include all recurring monthly debt obligations:

  • Mortgage or rent payments
  • Minimum credit card payments
  • Auto loan payments
  • Student loan payments
  • Personal loan payments
  • Child support or alimony
  • HOA fees
  • Other recurring debt obligations

Do not include utilities, groceries, or other variable expenses that aren’t debts.

Why is my DTI ratio important?

Your DTI ratio is important because:

  • It’s a key factor lenders use when deciding whether to approve loan applications
  • It helps you understand your financial health and borrowing capacity
  • It can indicate whether you’re taking on too much debt relative to your income
  • A lower DTI ratio can help you qualify for better interest rates and loan terms