Debt-to-Income Calculator
Calculate your debt-to-income (DTI) ratio, a key metric lenders use to evaluate your ability to manage monthly payments. Enter your total monthly debt payments and gross monthly income to see your DTI percentage and financial health rating.
Debt-to-Income Ratio Calculator
FAQ
What is a good debt-to-income ratio?
A DTI ratio below 36% is generally considered good. Below 20% is excellent. Most lenders prefer a DTI of 43% or less for mortgage qualification, though some programs allow up to 50%.
What counts as monthly debt payments?
Monthly debt payments include mortgage or rent, car loans, student loans, credit card minimum payments, personal loans, child support, and any other recurring debt obligations. Utilities and groceries are not included.
How can I improve my DTI ratio?
You can improve your DTI by paying down existing debt, avoiding new debt, increasing your income, or refinancing to lower monthly payments. Reducing your DTI can improve your chances of loan approval and better interest rates.