Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio to understand how lenders view your financial situation.
Monthly Income
Monthly Debt Payments
Currency
Your Debt-to-Income Ratio Results
Income Summary
Gross Monthly Income:$0.00
Additional Income:$0.00
Total Monthly Income:$0.00
Debt Summary
Housing Payment:$0.00
Other Debt Payments:$0.00
Total Monthly Debt:$0.00
Your DTI Ratio
Front-End DTI Ratio (Housing costs only): 0%
Back-End DTI Ratio (All debts): 0%
DTI Rating: Enter your income and debt details to get your rating
Calculate your DTI ratio to receive personalized advice.
About Our Debt-to-Income Ratio Calculator
Our Debt-to-Income (DTI) Ratio Calculator helps you understand how lenders view your financial health. This important metric compares your monthly debt payments to your monthly income, providing insight into your borrowing capacity and financial stability.
Key Features:
- Calculate both front-end (housing) and back-end (total) DTI ratios
- Get personalized ratings and advice based on your DTI results
- Understand how lenders evaluate your loan applications
- Track how changes in debt or income affect your DTI ratio
- See how your DTI compares to lender requirements for various loan types
- Support for multiple currencies
How to Use the Calculator
- Enter your monthly income - your gross (before tax) regular income and any additional income sources.
- Input your monthly debt payments - include all recurring debt obligations like mortgage/rent, car payments, student loans, credit cards, etc.
- Select your preferred currency for display purposes.
- Click "Calculate DTI Ratio" to see your results and personalized analysis.
Our calculator provides estimates based on the information you provide. For accurate financial advice tailored to your specific situation, consider consulting with a financial advisor.
Understanding Debt-to-Income Ratio
Your debt-to-income ratio is a financial measurement used by lenders to assess your ability to manage monthly payments and repay debts:
- Front-End DTI only includes housing costs (mortgage or rent) compared to your gross monthly income
- Back-End DTI includes all monthly debt payments compared to your gross monthly income
- Lower DTI ratios indicate better financial health and higher loan approval chances
DTI Ratio Guidelines
- 36% or less: Healthy DTI - excellent position for loan approval
- 37-42%: Manageable DTI - still good for most conventional loans
- 43-49%: Concerning DTI - could limit your loan options
- 50% or higher: High DTI - may face difficulty qualifying for new loans
Most lenders prefer a back-end DTI ratio of 36% or lower, though some loan programs allow ratios up to 43% or even 50% in certain circumstances.
Tips to Improve Your DTI Ratio
- Pay down existing debt - focus on high-interest loans and credit cards first
- Avoid taking on new debt before applying for a major loan like a mortgage
- Increase your income through a better-paying job, side hustle, or additional work hours
- Consider debt consolidation to potentially lower monthly payment amounts
- Extend loan terms cautiously - this can lower monthly payments but may increase total interest paid
- Create a debt repayment plan with specific goals and timelines
Even small improvements in your DTI ratio can significantly enhance your borrowing options and potentially secure better interest rates on loans.