Debt-to-Income Ratio Calculator
Determine your debt‑to‑income (DTI) ratio by dividing total monthly debt payments by gross monthly income.
Enter values and click Calculate
Calculate Your Debt-to-Income Ratio to Assess Financial Health
The DTI Calculator sums all recurring monthly debt payments (mortgage/rent, car loans, credit card minimums, etc.) and divides by your gross monthly income. The result is a percentage used by lenders to gauge your ability to manage new debt.
Formula
DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100%
How to Use?
- Enter your gross monthly income.
- Enter all recurring debt payments (mortgage/rent, car loans, credit card minimums, etc.).
- View DTI percentage and a status recommendation.
Worked Examples
Example
Given:inputs
monthlyGrossIncome:5000
mortgageOrRent:1200
carLoanPayment:300
creditCardMin:100
Result:calculated
totalDebt:1600
dtiRatio:32
status:Good
Why DTI Matters
Lenders use DTI to assess your ability to manage monthly payments. A lower DTI indicates better financial health.
Table: DTI Ratio Categories
| DTI | Interpretation |
|---|---|
| <20% | Excellent |
| 20-35% | Good |
| 36-43% | Acceptable (may qualify for loans) |
| >43% | High – consider reducing debt |
FAQs
What is considered a good DTI?
Below 36% is generally good; below 43% may still qualify for many loans.
Should I include utility bills?
No, DTI typically includes only debt payments (loans, credit cards, housing).