📊 Debt-to-Income Ratio Calculator
Enter your total monthly debt payments and gross monthly income to calculate your debt-to-income (DTI) ratio, a common measure lenders use.
The ratio, and the bands it is scored against
DTI = monthly debt payments / gross monthly income x 100
payments you can afford at a target = gross income x target%The defaults, $2,000 of payments against $6,000 of gross income, give 33.3%. Rearranged, the second line is the more useful one: to stay under 36% on that income your payments have to stop at $2,160.
| Result | How this tool scores it |
|---|---|
| 36% or less | Healthy |
| 36% to 43% | Moderate |
| Above 43% | High |
Which payments belong in the top line
Count the contractual monthly amounts a lender can see: rent or mortgage including its escrow, card minimums, auto and student loan payments, personal loans, and any court-ordered support. Leave out spending you could stop next month - utilities, groceries, phone, subscriptions, insurance premiums. Use the minimum due on a card, not what you actually pay. Clearing a $250 car payment from the defaults takes the ratio from 33.3% to 29.2%, which is why a small loan paid off early can matter more than its size suggests.
Frequently asked questions
Is a 33% debt-to-income ratio good?
It sits in this tool's healthy band, below the 36% line. Bands vary by lender and loan type, so treat the label as a rough guide rather than a decision.
Does rent count as debt for DTI?
Yes - housing is the largest line for most people, rent or mortgage alike. Include property tax and insurance if they are paid through an escrow.
How do I lower my DTI quickly?
Clear the debt with the largest monthly payment relative to its balance, which is usually a car or personal loan rather than a card. A card balance you have halved barely moves the ratio, because only its minimum was ever counted.