Debt-to-Income Ratio Calculator
Calculate Your DTI Percentage
Your Debt-to-Income Ratio
DTI Percentage
0%
of income used for debt
What’s a good DTI? Lenders generally prefer DTI below 36%. Over 43% may make it harder to qualify for new loans.
Understanding Debt-to-Income Ratio (DTI): A Guide to Financial Health
Your Debt-to-Income Ratio (DTI) is a key metric that lenders use to assess your ability to manage monthly payments and repay debts. It represents the percentage of your gross monthly income that goes toward paying recurring debt obligations.
Why DTI matters: A lower DTI improves your chances of qualifying for loans and better interest rates. Monitoring it helps you maintain financial stability.
How to Use This Calculator
- Monthly Gross Income: Total income before taxes and deductions.
- Total Monthly Debt: Sum of all regular debt payments like rent, mortgage, student loans, car loans, child support, alimony, and minimum credit card payments.
Click “Calculate DTI” to see what portion of your income is going toward debt each month.
Interpreting Your DTI Result
- Below 36%: Healthy – indicates manageable debt in relation to income.
- 37–42%: Moderate – could still qualify for some loans but watch your spending.
- 43–49%: High – consider reducing debt or increasing income to improve financial health.
- 50% or higher: Risky – may struggle to get approved for new loans and should prioritize debt reduction.
Use this tool regularly to track your progress and make informed decisions about borrowing and budgeting.