Debt-to-Income (DTI) Ratio Calculator

The Debt-to-Income Ratio (DTI) Calculator is a financial tool that helps individuals assess their financial health by calculating their DTI. DTI is a commonly used metric by lenders to evaluate an individual's ability to manage debt. It's calculated by comparing a person's monthly debt payments to their monthly income.

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Your Debt-to-Income (DTI) Ratio:


  • Monthly Income ($): Enter your total monthly income in the "Monthly Income ($)" field. This includes your gross monthly earnings before taxes and deductions.
  • Monthly Debt Payments ($): Input the total amount of your monthly debt payments in the "Monthly Debt Payments ($)" field. Include all monthly debt obligations such as mortgage or rent, car loans, credit card payments, student loan payments, personal loans, and any other outstanding debts.
  • Calculate DTI: Click the "Calculate DTI" button to initiate the calculation.

View the Result:

  • Monthly Income: This should be the total amount of money you earn on a monthly basis before taxes and deductions. Include all sources of income, such as salary, wages, rental income, and any other regular income.
  • Monthly Debt Payments: This includes the sum of all your monthly debt obligations. It encompasses payments for mortgages, rent, car loans, credit cards, student loans, personal loans, and any other recurring debt payments.
  • DTI: The Debt-to-Income Ratio (DTI) is calculated by dividing your total monthly debt payments by your total monthly income and expressing the result as a percentage.
  • DTI Interpretation: The calculator will provide a brief interpretation of your DTI result, indicating whether your DTI is within a common range of acceptability. Lenders often use specific DTI thresholds to assess creditworthiness.

Understanding DTI:

  • A lower DTI: indicates a healthier financial situation, as it means you have more income available to cover your debts.
  • Lenders typically prefer borrowers with lower DTIs: as it suggests a lower risk of defaulting on loans.
  • Different lenders may have different acceptable DTI thresholds: but a DTI of 43% or lower is often considered a good target for most loans.

Using this Debt-to-Income Ratio Calculator can help you assess your current financial standing and understand how your debt obligations compare to your income. It's a valuable tool for individuals who are considering taking on new debt or applying for loans, as it provides insights into your ability to manage additional financial responsibilities.