Debt-to-Income Ratio Calculator
Managing debt responsibly is a critical part of financial health. Our Debt-to-Income (DTI) Ratio Calculator makes it easy to understand how your monthly debts compare to your monthly income. Whether you’re preparing to apply for a mortgage, consolidate debt, or just want a clearer picture of your finances, knowing your DTI ratio can help you make more informed decisions.
What is a Debt-to-Income (DTI) Ratio?
The DTI ratio measures the percentage of your income that goes toward paying debts each month. Lenders often use your DTI ratio when deciding whether to approve you for loans or credit. A lower DTI ratio shows that you have a healthy balance between debt and income, while a higher DTI could signal financial stress.
How to Use This Calculator:
Simply enter all your monthly income sources and your monthly debt payments below. Our calculator will automatically compute your front-end DTI (housing expenses only) and back-end DTI (total debts). You’ll also receive real-time feedback about your results, helping you understand whether your ratio is in a healthy range.
Ideal Debt-To-Income Ranges:
- Front-End DTI (housing only): Typically, below 28%.
- Back-End DTI (total debts): Ideally under 36%, though some lenders accept up to 43% or more depending on the loan type.
Why Your Debt-To-Income Matters:
Maintaining a lower DTI ratio improves your chances of getting approved for new credit with favorable terms. It can also help you qualify for better mortgage rates, personal loans, and refinancing opportunities.
Learn more about managing debt on our Debt Management Tips page.
Need help building a budget? Check out our Monthly Budget Calculator.
Debt-to-Income (DTI) Ratio Calculator
Find out your financial standing by calculating your front-end and back-end DTI ratios below.