Debt-to-Income Calculator

How Debt-to-Income Ratio Works

Your debt-to-income (DTI) ratio compares your monthly debt payments to your monthly gross income. Lenders use it to assess whether you can take on more debt.

The formula

DTI = (Monthly Debt Payments ÷ Monthly Gross Income) × 100

Step-by-step

1. Add up all monthly debt payments: rent/mortgage, car loan, student loans, credit card minimums, child support, and any other recurring debt.
2. Divide by your gross (pre-tax) monthly income.
3. Multiply by 100 to get a percentage.

Worked example

,500 in monthly debt payments, ,000 gross monthly income. DTI = (1,500 ÷ 5,000) × 100 = 30%.

What the numbers mean

• Under 20%: Excellent — lots of borrowing capacity
• 20–36%: Healthy — most lenders are comfortable
• 37–43%: Caution — may qualify with tighter terms
• Over 43%: High — most lenders will decline new credit