How to Use This Calculator
Enter your gross monthly income (before taxes) and all your monthly debt payments. The calculator computes your DTI ratio, which lenders use to evaluate your borrowing capacity.
Formula
DTI Ratio = (Total Monthly Debt Payments / Gross Monthly Income) × 100
Front-End Ratio = (Housing Payment / Gross Monthly Income) × 100
Examples
Example
Monthly Income: $6,000
Mortgage: $1,500, Car: $350, Student Loans: $200, Credit Cards: $150
DTI Ratio: 36.7% — within acceptable range for most lenders.
Frequently Asked Questions
What is a good debt-to-income ratio?
Under 36%: Excellent — you are well-positioned for most loans.
36-43%: Acceptable — most mortgage lenders will still approve.
43-50%: High — may have difficulty getting approved.
Over 50%: Very high — focus on reducing debt before taking on more.
36-43%: Acceptable — most mortgage lenders will still approve.
43-50%: High — may have difficulty getting approved.
Over 50%: Very high — focus on reducing debt before taking on more.
Does DTI affect my credit score?
DTI is not directly part of your credit score calculation. However, lenders consider it alongside your credit score when making lending decisions. A high DTI signals higher risk to lenders.
How can I improve my DTI?
Increase your income (raise, side job, etc.) or reduce your debt payments (pay off loans, refinance at lower rates, or consolidate debt).