Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio from monthly income and debt payments.
Debt-to-Income Ratio: A Complete Guide
Debt-to-income ratio, often called DTI, compares required monthly debt payments with gross monthly income. It helps show how much of your income is already committed before taking on new borrowing.
Lenders may review DTI for mortgages, auto loans, personal loans, and credit applications. It is also useful for personal budgeting because a high DTI can reduce flexibility for savings, emergencies, and daily expenses.
Gross income base
Many lenders use gross income before taxes because it is easier to verify and compare. For personal budgeting, net-income debt share can also be helpful.
Monthly debt payments
DTI usually focuses on required monthly debt payments, not total loan balances. Credit card minimum payments, loan installments, and housing payments are key inputs.
Housing ratio
Housing ratio isolates rent or mortgage payment compared with gross income. This helps show whether housing alone is taking a large share of income.
Risk category
Lower DTI usually means more financial flexibility. Higher DTI can signal tighter cash flow and may make approval for new debt harder or more expensive.