Debt-to-Income (DTI) Calculator
Debt-to-Income Ratio Calculator is a financial tool that helps you measure your monthly debt obligations against your gross income.
What Is a Debt-to-Income (DTI) Ratio Calculator?
Debt-to-Income Ratio Calculator is a financial tool that helps you measure your monthly debt obligations against your gross income. This ratio is crucial for lenders when evaluating loan applications (mortgages, auto loans, personal loans) and helps you understand your overall debt burden.
Why Use a Debt-to-Income Calculator?
✅ Loan Approval Insight – Lenders typically prefer a DTI below 36-43%
✅ Budget Planning – Identify if your debt levels are manageable
✅ Financial Health Check – Spot warning signs of over-leverage
✅ Debt Reduction Strategy – Track progress as you pay down balances
How to Calculate Your Debt-to-Income Ratio
Formula: DTI (%) = (Total Monthly Debt Payments / Gross Monthly Income) × 100
What Counts as Debt?
- Mortgage/Rent
- Auto Loans
- Credit Card Payments (minimums)
- Student Loans
- Personal Loans
- Alimony/Child Support
What Counts as Income?
- Salary/Wages (pre-tax)
- Bonuses/Commissions
- Rental Income
- Investments (if regular)
DTI Categories
| Ratio Range | Financial Standing | Lender Perception |
|---|---|---|
| < 20% | Excellent | Low risk |
| 20-35% | Healthy | Good approval odds |
| 36-43% | Manageable | May require scrutiny |
| 44-49% | Strained | Higher rejection risk |
| 50%+ | Overleveraged | Very difficult to qualify |
How to Improve Your DTI
1️⃣ Increase Income – Side gigs, raises, or rental income
2️⃣ Pay Down Debt – Focus on high-interest balances first
3️⃣ Avoid New Debt – Pause new credit applications
4️⃣ Refinance – Lower monthly payments via better rates
Related Financial Calculators
1️⃣ Mortgage Calculator – See what home price fits your budget
2️⃣ Loan Payment Calculator – Estimate monthly payments on new debt
3️⃣ Credit Card Payoff Calculator – Plan your debt-free timeline