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Debt-to-Income Ratio Calculator
Your DTI ratio is how much of your gross monthly income goes to debt payments. Lenders use it to decide if you qualify for a loan.
Debt-to-Income Ratio Calculator
Your DTI is one of the most important numbers lenders look at. Find yours instantly.
Monthly Debt Payments
What lenders look for
What Is a Debt-to-Income Ratio?
Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward monthly debt payments. It includes your mortgage or rent, car payment, student loans, minimum credit card payments, and any other recurring debt obligations. It does not include expenses like groceries, utilities, or insurance.
To calculate: add up all monthly debt payments, divide by your gross monthly income (before taxes), and multiply by 100. If you earn $5,000/month gross and pay $1,500/month in debt payments, your DTI is 30%.
What DTI Do Lenders Want?
Below 36% — Most lenders consider this the ideal range. You have a strong chance of approval for mortgages, auto loans, and credit cards. Conventional mortgage lenders prefer a front-end DTI (housing costs only) below 28% and a back-end DTI (all debts) below 36%.
36-43% — Acceptable for many lenders but you may face higher interest rates. FHA mortgages allow up to 43% back-end DTI. You're on the edge — focus on paying down debt before applying for new credit.
43-50% — Difficult to qualify for most loans. Some FHA lenders will go up to 50% with strong compensating factors (large cash reserves, high credit score). You should prioritize debt reduction before applying.
Above 50% — Most lenders will deny your application. More than half your income is going to debt, which signals high risk. Consider debt consolidation, the debt avalanche method, or increasing your income before applying for new credit.
How to Lower Your DTI
There are only two ways to lower your DTI: reduce your monthly debt payments or increase your gross income. On the debt side, pay off your smallest balances first (this eliminates minimum payments from the equation), consolidate high-interest credit card debt with a balance transfer card, or refinance loans to extend the term and lower monthly payments. On the income side, a raise, side hustle, or freelance income all increase your denominator and drop your ratio.