Debt-to-Income (DTI) Ratio Calculator
Calculate your DTI ratio to understand your borrowing capacity and improve your chances of loan approval.
Financial Information
Incomes (Before Tax)
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Expenses / Debts
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Yearly amount - personnel loan, child support, alimony, etc.
Results
Debt-to-Income (DTI) Ratio: 3%
Your DTI ratio is good
Income Breakdown
Debt Breakdown
Income Breakdown
Debt Breakdown
Related & Other Popular Calculators
Our Debt-to-Income Ratio Calculator provides an easy way to determine how much of your income is used for debt payments. Lenders primarily assess your DTI ratio, as it gives them an indication of your financial wellbeing, as well as whether loans, mortgages, or other credit will be paid back as agreed. A lower DTI ratio provides more assurances that you can manage new debt on top of existing debt.
By using this free online tool, you can enter your income and expenses to see a visual representation of your financial obligations. The Debt-to-Income Ratio Calculator will give you an actual percentage so you can see how much you can borrow at the moment and plan accordingly.
What is a Debt-to-Income Ratio?
Debt-to-Income Ratio (DTI) is a financial measure that compares monthly debt payments to gross monthly income. It is shown as a percentage, which demonstrates of percentage of income is directed towards repaying debt.
For example, if your monthly income is $6,000 and your total debt payments are $1,800, your DTI ratio is 30%.
Lenders will use this Debt-to-Income Ratio as a measurement of your ability to sustain any new accounts and the balancing of past debt obligations.
Why is the Debt-to-Income Ratio Important?
Ideal Debt-to-Income Ratio
We have made our Debt-to-Income Ratio calculator so that you can understand your standings and take action if your Percentage is too high.
How to Improve Your Debt-to-Income Ratio
If your Debt-to-Income Ratio calculator scores are too high, here are some actionable steps to reduce them.
The DTI along with the Debt-to-Income Ratio calculator can all be utilized again and again to allow you to see if you're tracking in the right direction and moving toward a more financially sound balance.
Your Debt-to-Income Ratio Calculator is not simply a number - it gives you a picture of your financial well-being. It doesn't matter if you intend to seek a mortgage, a personal loan, or just want to know your debt position; if you use this tool on a regular basis it helps you keep the right path.
Now is the time to start with our Debt-to-Income Ratio Calculator and take charge of your future.
FAQs
It is a free web utility that computes the percentage of your income that is committed to making debt payments to aid you in determining your financial well-being.
Lenders use DTI ratios to assess your ability to repay the loan and to qualify you for the loan. A lower DTI poses less risk.
Most lenders prefer DTI ratios that are below 36%, although there's a possibility of getting loans with DTI in the 37% to up to 43% range - assuming reasonable kind of credit history, and/or level of income.
The DTI Calculator covers all fixed debts such as a mortgage or rent, car loans or leases, student loans, and credit card debt. The calculator does not include new or updated estimates on daily living expenses.
Yes, you can improve your DTI ratio prior to applying for a loan by lowering the balance on existing debts, avoiding taking on any new credits, and/or increasing income prior to applying for a loan.
It is advised to consider checking your DTI ratio at least quarterly, or whenever you are possibly going to apply for a major loan or mortgage.