Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio (DTI) - a key number lenders use to evaluate mortgage and loan applications.
Mortgage/rent, car, student loans, credit cards
Before taxes
Your DTI ratio
20.0%
Category
Excellent
What Your Result Means
Your DTI ratio shows what percentage of your gross monthly income goes toward debt payments. A lower DTI generally means more room in your budget and a stronger loan application. Lenders typically look for a DTI under 36%, though some loan programs allow higher.
How It Is Calculated
DTI = (Total Monthly Debt Payments / Gross Monthly Income) × 100
Worked Example
With $1,200 in monthly debt payments and $6,000 in gross monthly income, your DTI is ($1,200 / $6,000) × 100 = 20%, which falls into the "Good" category.
Important Assumptions
- Include all recurring debt payments: rent or mortgage, car loans, student loans, minimum credit card payments.
- Does not include everyday expenses like groceries or utilities - only debt obligations.
Frequently Asked Questions
- What's considered a good DTI?
- Generally, under 36% is considered good by most lenders, though requirements vary by loan type and lender. Under 20% is often considered excellent.
Related Calculators
House Affordability Calculator
Estimate how much home you can afford based on your income, debts, and down payment.
Mortgage Calculator
Estimate your monthly mortgage payment, including taxes, insurance, and HOA.
Debt Consolidation Calculator
See if consolidating multiple debts into one loan could lower your monthly payment.
Methodology
This calculator uses the standard DTI formula used across mortgage lending. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.