Debt-to-Income Calculator

Your debt-to-income ratio tells lenders how much of your income goes toward debt payments each month. It’s a key factor in mortgage and loan approvals. Calculate yours below and see where you stand.

What Is Debt-to-Income Ratio?

Your debt-to-income ratio (DTI) compares how much you owe each month to how much you earn. It’s calculated by dividing your total monthly debt payments by your gross monthly income. Lenders use this ratio to evaluate whether you can manage monthly payments and repay borrowed money. While DTI doesn’t directly affect your credit score, it’s one of the most important factors lenders consider for mortgages, auto loans, and personal loans.

DTI Thresholds Lenders Use

For conventional mortgages, most lenders prefer a DTI of 36% or lower, though some will accept up to 43%. FHA loans may allow up to 50% in some cases. For the best interest rates and loan terms, aim for under 28%. Keep in mind that these are guidelines — individual lenders may have stricter or more lenient requirements, and your overall financial picture matters too.

Frequently Asked Questions

Does DTI affect my credit score?

No, your DTI ratio is not factored into your credit score calculation. However, the debts that make up your DTI (particularly credit card balances) do affect your score through utilization. And lenders check DTI separately as part of the underwriting process.

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