Interactive DTI Ratio Calculator

Calculate your debt-to-income ratio with step-by-step explanations and visual gauge. Professional tool for financial health assessment and loan qualification.

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.
0% 35% Good 43% Acceptable 50%+ High

DTI Ratio Formula

Understanding the calculation and interpretation

DTI 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 Guide

  • DTI ≤ 35%: Looking good – Your debt is at a manageable level relative to your income
  • DTI 36%-43%: Acceptable – You’re managing debt adequately, but consider reducing before taking on more
  • DTI > 43%: High – Your debt load is high relative to income, may make loan approval difficult

How to Use the Calculator

Simple steps for accurate DTI analysis

1

Enter Income Sources

Input all monthly income sources including salary, pension, investments, and other income

2

Enter Debt Payments

Input all monthly debt obligations including rent, mortgage, credit cards, loans

3

Get Analysis

View your DTI ratio with interpretation, visual gauge, and charts

Frequently Asked Questions

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.

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

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.

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.

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

No questions found

Try searching with different keywords or browse all questions above.