Debt-to-Income Ratio

Calculate your DTI ratio to see how lenders view your financial health and determine your borrowing power for a new home or car.

Debt-to-Income Calculator

Monthly Income

Enter your total gross income (before taxes).

Monthly Debt Payments

List your recurring monthly debt obligations.

DTI Results

42%

Your ratio is within the standard lending limit.

Total Debt

$2,550

Max Goal (36%)

$2,160

Understanding DTI Thresholds

analytics How It's Calculated

Lenders calculate DTI by dividing your total monthly debt obligations by your gross monthly income. Gross income is the amount you earn before taxes and deductions.

DTI %=(Total Monthly Debts ÷ Gross Monthly Income) × 100

Lending Standards

  • 36% or LessExcellent. You represent a low risk to lenders.
  • 37% to 43%Adequate. Most mortgage lenders set 43% as the absolute limit.
  • Above 43%High Risk. You may struggle to qualify for traditional loans.

Built on Industry Standards

Our calculator uses standard DTI (Debt-to-Income) formulas utilized by major U.S. mortgage lenders and the CFPB.

*Disclaimer: This tool is for educational and estimating purposes only. It does not constitute financial or mortgage advice. Actual loan eligibility and interest rates will vary based on your lender and full credit profile.

Frequently Asked Questions

What is Debt-to-Income (DTI) ratio?expand_more

Your DTI ratio is the percentage of your gross monthly income (before taxes) that goes toward paying your monthly debt obligations. Lenders use this to measure your ability to manage monthly payments and repay debts.

Source: CFPB
What is a 'good' DTI ratio?expand_more

Generally, a DTI of 36% or less is considered healthy. For a mortgage, most lenders prefer a ratio no higher than 43%, though some government-backed loans allow up to 50% in specific cases.

Source: CFPB: Debt-to-Income Ratio
Which debts should I include?expand_more

Include all recurring monthly debt payments: mortgage or rent, car loans, student loans, minimum credit card payments, child support/alimony, and other personal loans. Do not include monthly expenses like groceries, utilities, or health insurance.

Source: Investopedia: DTI Formula
Does a high DTI affect my credit score?expand_more

DTI ratio is not part of your credit score calculation. However, lenders look at both your credit score and your DTI when deciding whether to lend you money.

Source: CFPB: Credit Scores and Debt
How does the Health Badge work?expand_more

Our dynamic Health Badge analyzes your borrowing power in real-time:

  • 36% or Less: Excellent. You represent a low risk to lenders.
  • 37% to 43%: Adequate. Most mortgage lenders set 43% as the absolute limit.
  • Above 43%: High Risk. You may struggle to qualify for traditional loans.
Source: FinanceTact Research

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