Debt-to-Income Ratio Calculator
Calculate your Debt-to-Income (DTI) ratio to understand your financial health and loan eligibility.
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Understanding DTI Ratio
Lenders use DTI to evaluate loan risk. A DTI below 36% is generally considered good. Most conventional mortgages require a DTI of 43% or less. The lower your DTI, the better your loan terms.
What is the Debt-to-Income Ratio Calculator?
The Debt-to-Income (DTI) Ratio Calculator is the exact tool mortgage underwriters use to approve or deny loans. It measures what percentage of your gross monthly income goes directly toward paying off debt.
How It Works (Algorithm)
DTI is heavily regulated. To get a standard conventional mortgage, your DTI generally cannot exceed 36% (or up to 43% with excellent credit). The tool sums your minimum monthly payments for auto loans, credit cards, and student loans, and divides it by your pre-tax income.
$$ \text{DTI \%} = \frac{\text{Total Monthly Debt Payments}}{\text{Gross Monthly Income}} \times 100 $$
The core metric of consumer lending risk.
How to Use It
Enter your gross monthly income (before taxes). Enter your recurring monthly debt payments (do not include living expenses like groceries or utilities). The calculator will output your DTI percentage and advise if you are in the safe zone for lending.