Debt-to-Income Ratio Calculator
Debt-to-Income Ratio Calculator
Debt-to-income ratio compares your total monthly debt payments (loans, credit cards, car payments — not including everyday living expenses) to your gross monthly income. Lenders use this ratio, alongside credit score, as a primary factor in mortgage and loan approval decisions.
Most mortgage lenders look for a DTI below 36-43% depending on the loan type, with lower ratios qualifying for better rates; a high DTI signals to lenders that a large share of income is already committed to debt, increasing perceived lending risk.
- Gross Income, Not Net: DTI is calculated on gross (pre-tax) monthly income, not your take-home pay.
- Debt Payments Only: Includes loan/credit card/car payments — not groceries, utilities, or other living expenses.
- Lender Thresholds: Conventional mortgages typically want DTI below 36-43%; higher ratios may require a larger down payment or higher interest rate.
What counts as "debt" in this calculation?
Minimum monthly payments on loans, credit cards, car payments, student loans, and any other debt with a required monthly payment — not rent (unless applying for a mortgage, where it may be included differently) or everyday expenses.
How can I lower my DTI?
Pay down existing debt balances, avoid taking on new debt before a major loan application, or increase your income — any of these directly improves the ratio lenders see.
Debt-to-Income Ratio Calculator
Debt-to-income ratio compares your total monthly debt payments (loans, credit cards, car payments — not including everyday living expenses) to your gross monthly income. Lenders use this ratio, alongside credit score, as a primary factor in mortgage and loan approval decisions.
Most mortgage lenders look for a DTI below 36-43% depending on the loan type, with lower ratios qualifying for better rates; a high DTI signals to lenders that a large share of income is already committed to debt, increasing perceived lending risk.
- Gross Income, Not Net: DTI is calculated on gross (pre-tax) monthly income, not your take-home pay.
- Debt Payments Only: Includes loan/credit card/car payments — not groceries, utilities, or other living expenses.
- Lender Thresholds: Conventional mortgages typically want DTI below 36-43%; higher ratios may require a larger down payment or higher interest rate.
What counts as "debt" in this calculation?
Minimum monthly payments on loans, credit cards, car payments, student loans, and any other debt with a required monthly payment — not rent (unless applying for a mortgage, where it may be included differently) or everyday expenses.
How can I lower my DTI?
Pay down existing debt balances, avoid taking on new debt before a major loan application, or increase your income — any of these directly improves the ratio lenders see.