Free Debt-to-Income (DTI) Ratio Calculator
Your Debt-to-Income ratio determines if lenders will approve you for a mortgage or loan. Enter your numbers below to see where you stand.
Most lenders prefer 36% or lower for the best interest rates.
Monthly Income (Gross)
Monthly Debt Payments
Your DTI Score
🎛️ DTI Simulator
Understanding Your DTI Ratio
Your Debt-to-Income (DTI) Ratio is one of the most important numbers lenders look at. It simply measures how much of your gross monthly income goes toward paying debts.
- 35% or less: Generally viewed as good. You're living within your means and likely qualify for loans with favorable rates.
- 36% to 49%: Manageable, but lenders may be concerned. You might still qualify, but you may pay higher interest rates or be asked for a larger down payment.
- 50% or more: Considered critical. With half your income going to debt, you have little room for unexpected expenses. Many mortgage lenders will decline applications with a DTI above 50%.
Note: Lenders typically use your "Front-End" ratio (housing costs only) and "Back-End" ratio (total debt). This calculator determines your Back-End ratio, which gives the complete picture of your financial health.
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Frequently Asked Questions
What is a good debt-to-income ratio?
A good DTI ratio is typically 36% or lower. This means your monthly debt payments should be no more than 36% of your gross monthly income. Lenders view borrowers with lower DTI ratios as less risky and may offer better interest rates.
What DTI ratio do I need to qualify for a mortgage?
Most conventional mortgage lenders require a DTI ratio of 43% or lower. FHA loans may accept up to 50% in some cases. VA loans are more flexible and consider overall financial health rather than strict DTI limits.
How do I calculate my DTI ratio?
Add up all your monthly debt payments (mortgage/rent, car loans, credit cards, student loans, personal loans) and divide by your gross monthly income (before taxes). Multiply by 100 to get a percentage. Use our calculator above for an instant result.
How can I lower my DTI ratio quickly?
The fastest ways to lower your DTI include: paying down small debts to eliminate payments, refinancing to lower monthly minimums, increasing income through side work, or avoiding new debt before applying for a loan.
Does rent count toward my DTI calculation?
Current rent payments typically do NOT count toward your DTI when applying for a mortgage, since that payment will be replaced by the new mortgage payment. However, if you're keeping a rental property, that mortgage does count.