What this calculator shows you
- DTI Calculation
- Calculate front-end and back-end ratios
- Lender Guidelines
- See if you meet typical requirements
- Improvement Tips
- Learn how to lower your DTI
- Goal Setting
- Set target DTI goals
What is DTI?
Debt-to-income ratio is your monthly debt payments divided by gross monthly income. It measures how much of your income goes to debt. Lenders use this to assess your ability to take on more debt.
Good vs. Bad DTI
Under 36%: Excellent. 36-43%: Acceptable for most mortgages. 43-50%: May limit options. Over 50%: Difficult to get approved. Lower is always better for financial flexibility.
Questions people ask
What debts count in DTI?
Monthly payments for: mortgages, car loans, student loans, credit card minimums, personal loans, and alimony/child support. Utilities and subscriptions typically do not count.
How do I lower my DTI?
Two ways: reduce debt payments (pay off loans, refinance to lower payments) or increase income. Paying off small debts can quickly improve DTI for mortgage qualification.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.