Debt-to-Income Ratio Calculator

Free debt-to-income ratio calculator. See if your DTI qualifies for mortgage approval and loans.

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Formula: DTI = (Monthly Debt Payments / Gross Monthly Income) × 100

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What Is This Calculator?

The Debt-to-Income ratio (DTI) compares your monthly debt payments to your gross monthly income. Lenders use DTI to evaluate borrowing risk — a lower ratio means you have more income available relative to debt. Most mortgage lenders prefer a DTI under 36%, with no more than 28% going to housing costs.

How to Calculate

Add up all monthly debt payments (mortgage/rent, car loans, student loans, credit card minimums, personal loans). Divide by your gross monthly income (before taxes). Multiply by 100 to get the percentage.

Examples

Monthly debts: $1,200 mortgage + $300 car payment + $200 student loans = $1,700. Gross monthly income: $6,000. DTI = 1700/6000 × 100 = 28.3%. This is within the preferred range for most lenders.

Recommended Tools

Credit Karma and NerdWallet offer free DTI assessments alongside credit monitoring to help you understand your full financial picture.

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