Debt-to-Income Ratio Calculator
See what portion of your income goes toward debt, covering both the housing-only ratio and the total-debt ratio that lenders check most.
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Your Income
Enter gross amounts, before tax.
Your Monthly Debt
Include recurring payments only. Leave out everyday costs like groceries or subscriptions.
Your Results
Ways to Lower Your DTI Ratio
- Raise Your Income. A second income source, overtime, or a raise at work all reduce your ratio while your debt total remains untouched.
- Pay Down Balances. Paying off a credit card or a small loan removes that monthly payment from the equation completely.
- Refinance High-Interest Debt. Moving a high-interest balance into a loan with a lower rate can shrink your monthly payment even if the total balance remains the same.
- Delay a Big Purchase. Holding off on a new car or a new credit line for a few months gives your existing payments time to drop off, which lowers your ratio before a lender checks it.
Common Questions
What counts as a good debt-to-income ratio?
Most lenders view a back-end ratio of 36% or below as manageable, and anything under 20% as excellent. A number above 43% can make loan approval tougher, and anything past 50% is considered a red flag by most lending standards.
What counts as debt in this calculation?
Recurring monthly obligations count: mortgage or rent, credit card minimums, auto loans, student loans, personal loans, and child support or alimony payments. One-time or day-to-day costs, such as groceries, utilities, and subscriptions, are generally left out of a DTI calculation.
Does rent count toward my DTI if I don’t own a home?
Yes. If you have no mortgage, your rent payment still counts as a housing cost and appears in both the front-end and back-end ratios.
What is the difference between DTI and credit utilization?
DTI compares your monthly debt payments against your income. Credit utilization compares your credit card balances against your total credit limit. Both matter to lenders, but they measure different things.
Can I qualify for a loan with a high DTI ratio?
It depends on the lender and loan program. FHA and VA loans generally allow higher ratios than conventional loans. A strong credit score, a large down payment, or cash reserves can also offset a higher ratio in a lender’s eyes.