Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio to assess financial health
About this calculator
The Debt-to-Income Ratio Calculator helps you determine what percentage of your monthly income goes toward debt payments. This crucial financial metric is used by lenders to assess your creditworthiness and ability to manage additional debt. By calculating your DTI ratio, you can better understand your financial health, make informed borrowing decisions, and identify areas where you might need to reduce debt or increase income to improve your financial standing.
How to use
Enter your total monthly debt payments, including credit cards, loans, and mortgages. Then input your gross monthly income before taxes and deductions. The calculator will instantly compute your debt-to-income ratio as a percentage, showing you where you stand financially.
Frequently asked questions
What is a good debt-to-income ratio?
Generally, a DTI ratio below 36% is considered good, with no more than 28% going toward housing expenses.
What debts should I include in the calculation?
Include all monthly debt payments: credit cards, auto loans, student loans, mortgages, and personal loans.
Do I use gross or net income?
Use your gross monthly income (before taxes and deductions) for the most accurate DTI calculation.