Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio (DTI) to understand your debt burden and assess your eligibility for loans and mortgages.
Monthly Income
Monthly Debt Payments
Your Debt-to-Income Ratio
DTI Assessment
Your DTI is in a healthy range.
Lender Guidelines
| DTI Range | Rating | Loan Eligibility |
|---|---|---|
| 0% - 20% | Best rates, high approval odds | |
| 20% - 36% | Favorable rates, likely approval | |
| 36% - 43% | May need compensating factors | |
| 43% - 50% | Limited options, higher rates | |
| Over 50% | Very difficult to qualify |
What is Debt-to-Income Ratio?
DTI measures the percentage of your monthly income that goes toward debt payments. Lenders use it to assess your ability to manage monthly payments and repay borrowed money.
- Front-End DTI: Housing costs ÷ Gross income
- Back-End DTI: All debt payments ÷ Gross income
How to Improve Your DTI
- Pay down existing debt
- Increase your income
- Avoid taking on new debt
- Refinance to lower monthly payments
- Consolidate high-interest debt
Frequently Asked Questions
Conventional loans typically require a back-end DTI of 43% or less, though some lenders allow up to 50% with compensating factors. FHA loans may allow up to 50% DTI. Lower DTI ratios result in better interest rates.
Yes, rent is included in DTI calculations. For mortgage applications, lenders look at your current housing payment (rent or existing mortgage) to assess your ability to handle a new mortgage payment.
No, standard DTI calculations don't include utilities, insurance (except mortgage insurance), groceries, or other living expenses. Only debt obligations with fixed monthly payments are included.