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Loan Qualification Metric

Debt-to-Income Ratio Calculator

Calculate your debt-to-income ratio, the key metric lenders use to assess your ability to manage monthly payments and qualify for a mortgage or loan.

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Income & Debt

Result


Enter your income and debts to calculate DTI
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Disclaimer: This calculator provides an estimate for educational purposes only and is not financial or lending advice. Actual lender qualification criteria vary by loan type, lender, and jurisdiction. Consult a mortgage or loan officer for official qualification assessment.

About the Debt-to-Income Ratio Calculator

Your debt-to-income (DTI) ratio compares your total monthly debt payments to your gross monthly income. Lenders use DTI as a key factor when evaluating mortgage, auto loan, and credit applications — it signals how much of your income is already committed to debt obligations.

How DTI Is Calculated

DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100. This includes housing costs, car loans, credit card minimums, student loans, and other recurring debt — but not everyday expenses like groceries, utilities, or discretionary spending.

Typical Lender Bands

Most conventional mortgage lenders prefer a DTI of 36% or below, with some programs allowing up to 43-50% depending on compensating factors like credit score and cash reserves. Above 50% is generally considered high-risk by most lenders.

Frequently Asked Questions

Most conventional loans want DTI at or below 36%, though FHA loans may allow up to 43-50% with strong compensating factors like a high credit score or large down payment. Requirements vary by lender and loan program.
DTI includes your housing payment (rent or mortgage including taxes/insurance) plus all other recurring debt obligations like car loans, student loans, and minimum credit card payments — but not utilities, groceries, or insurance premiums unrelated to housing.
Pay down existing debt balances, avoid taking on new debt before applying for a loan, or increase your gross income. Even small reductions in monthly debt payments can meaningfully improve your DTI.
No. Credit utilization measures how much of your available credit you're using, which affects your credit score. DTI measures your monthly debt payments against your income, and is used separately by lenders to assess repayment capacity.
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