Debt-to-Income Ratio Calculator
Your DTI ratio is one of the most important numbers lenders look at. Calculate yours in seconds and see where you stand.
Calculate Your DTI Ratio
Enter your monthly income and debt payments below.
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Your DTI Results
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What Is a Debt-to-Income Ratio?
Your debt-to-income (DTI) ratio compares your total monthly debt payments to your gross monthly income. Lenders use this number to assess your ability to manage monthly payments and repay borrowed money.
DTI Ratio Ranges
- 35% or less: Your debt is manageable relative to your income. Lenders view you favorably.
- 36% – 43%: You have a moderate amount of debt. You may still qualify for most loans but should work on reducing debt.
- 44% – 50%: Your debt load is high. You may have difficulty qualifying for new credit. Debt consolidation could help.
- 50%+: Your debt is significantly high. Taking action to reduce your DTI should be a priority.
How to Lower Your DTI Ratio
- Pay down existing debt — Focus on high-interest balances first.
- Increase your income — Side work or a raise lowers your ratio.
- Avoid taking on new debt — Pause new credit applications.
- Consider debt consolidation — Combining debts can lower your total monthly payment. Explore your options.
How is DTI calculated?
DTI is calculated by dividing your total monthly debt payments by your gross monthly income, then multiplying by 100 to get a percentage. For example, if you pay $2,000 per month in debts and earn $5,000 per month, your DTI is 40%.
What DTI ratio do I need for a mortgage?
Most conventional mortgage lenders prefer a DTI of 43% or lower. FHA loans may allow up to 50% in some cases. The lower your DTI, the stronger your application.
Does rent count in my DTI ratio?
Yes, your rent or mortgage payment is included in your DTI calculation. It's typically the largest portion of most people's DTI ratio.