Debt-to-Income Ratio Calculator
Calculate your DTI ratio to understand how lenders will view your mortgage or loan application. Add all monthly debt payments for an accurate result.
Your Income & Debts
Your DTI Analysis
Debt-to-Income Ratio
9.2%
ExcellentYour DTI is excellent. Lenders will view you very favourably. You have strong borrowing capacity.
< 20%
Excellent
< 36%
Good
≤ 43%
Max
How It Works
Debt-to-Income ratio = (Total monthly debt payments ÷ Gross monthly income) × 100
Lenders use DTI as a key measure of your ability to manage monthly payments and repay debts. The "back-end" DTI includes all monthly obligations: mortgage/rent, car loans, student loans, credit card minimums, and other installment debts.
Most conventional lenders use 43% as the maximum DTI for qualified mortgages (QM), though the ideal is 36% or below. A DTI under 20% demonstrates excellent financial health.
Worked example: with a $1,200 mortgage payment, a $350 car loan, and $300 in minimum card payments against $5,500 gross monthly income, DTI = 1,850 ÷ 5,500 ≈ 33.6%. That sits under the 36% threshold most lenders prefer, but paying off the car loan would drop it to 27.3% and noticeably improve loan terms offered.
Frequently Asked Questions
Written by the Tools & Deals Hub Editorial Team · Reviewed by Durga Prasad Mogulothu, Founder · Last reviewed:
Sources & further reading
- CFPB — Consumer tools (loans, mortgages, savings)
- Investor.gov — Free financial calculators (U.S. SEC)
Results are estimates for planning, not professional advice. Figures can change after publication — check the source for current numbers.