Debt-To-Income (DTI) Ratio Calculator
Use this calculator to see how your recurring monthly debt obligations compare with your gross monthly income. A lower DTI ratio signals that your income can comfortably support debt, while a higher ratio warns lenders that payments are consuming too much of your cash flow.
How to interpret the DTI ratio
The DTI ratio compares total recurring debt payments to gross income. Lenders look for ratios below 36% for conventional mortgages, while certain loan programs allow up to 43% or even higher if you have exceptional credit and assets. Carefully review each expense you enter so the result mirrors your real obligations.
Example of a realistic scenario
Alex spends 1,550 on housing, 450 on car loans, 300 on credit cards, and 250 on student loans each month. Alex's gross monthly income is 5,600. Adding the debts (1,550 + 450 + 300 + 250) equals 2,550. Divide 2,550 by 5,600 and multiply by 100 to get a DTI ratio of roughly 45.5%. This indicates that nearly half of Alex's income is already committed to debt, which could limit access to new financing.
Improving your DTI
Reduce optional debt, refinance high-rate loans to smaller payments, or increase income through overtime or side work. Tracking your DTI monthly helps you see whether those efforts are working and keeps you prepared for any future credit applications.