Debt-to-Income Ratio Calculator

Calculate your DTI ratio — the key metric lenders use to evaluate your ability to manage monthly payments and repay debts.

Your Financial Details

Gross Monthly Income (before tax)

Monthly Debt Payments

Your DTI Ratio

35.8%

Acceptable

Total Monthly Debt

$2,150

Remaining Income

$3,850

DTI Rating Scale

0–20%

Excellent

Ideal for loan approvals. Best interest rates available.

21–35%

Good

Lenders view this favorably. Most loans accessible.

36–43%

Acceptable

Maximum for most mortgage lenders (43% rule).

44–50%

High

Loan approval difficult. Focus on debt reduction.

50%+

Critical

Most lenders will decline. Immediate action needed.

Your rating: This is the maximum DTI most mortgage lenders will accept.

Understanding Your Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward paying debts. It is one of the most important metrics lenders use when evaluating loan applications — particularly for mortgages. A lower DTI indicates a healthier balance between debt and income.

There are two types of DTI ratios lenders calculate: the front-end ratio (only housing costs divided by income) and the back-end ratio (all monthly debt payments divided by income). Most lenders focus on the back-end ratio, which this calculator computes.

How to Improve Your DTI

•Pay down high-balance debts: Focus on eliminating debts entirely rather than spreading payments across all debts.
•Avoid taking on new debt: Do not open new credit cards or take out new loans before applying for a mortgage.
•Increase your income: A side income, raise, or second job directly improves your DTI ratio.
•Refinance existing debt: Lowering your interest rate reduces your minimum monthly payment and improves DTI.

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