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Debt-to-Income Ratio Calculator
About the Debt-to-Income Ratio Calculator
Your debt-to-income ratio (DTI) compares your monthly debt payments with your gross monthly income. Lenders use it to decide how much you can borrow.
How to use the Debt-to-Income Ratio Calculator
- Enter your Gross Monthly Income and Total Monthly Debt, or open the detailed breakdown and enter Mortgage / Rent, Auto Loans, Credit Cards and Student Loans.
- Press Calculate Ratio.
Formula and method
DTI = Total monthly debt payments ÷ Gross monthly income × 100
Worked example
Debt payments of $2,100 on a gross income of $6,000 is a DTI of 35%.
Calculating DTI. If you pay 2,000 a month toward debts and earn 6,000 a month before tax, your DTI is 2,000 ÷ 6,000 = 33.3%.
When to use the Debt-to-Income Ratio Calculator
- Checking your debt-to-income ratio before a mortgage or loan application.
- Seeing how paying off one debt improves your ratio.
- Understanding how much new debt you could take on.
Common mistakes to avoid
- Using net income when the lender uses gross income.
- Leaving out minimum payments on credit cards or student loans.
Tips
- Many mortgage lenders prefer a DTI of 36% or lower and often accept up to about 43%.
- Paying off a small loan entirely can lower DTI quickly.
Frequently Asked Questions
No. It counts recurring debt payments such as mortgage or rent, loans and minimum credit card payments.
Lenders often prefer 36% or below. Some loans allow higher ratios, but lower is safer for you.
Pay down debts, avoid taking on new debt, or increase your income.