Free Debt-to-Income Ratio Calculator - Evaluate Your Finances
Calculate your debt-to-income ratio and assess your financial health
Formula & Methodology
Your Debt-to-Income (DTI) ratio is a personal finance measure that compares your monthly debt payment to your monthly gross income. Lenders use it to measure your ability to manage the monthly payments to repay the money you plan to borrow.
- DTI Ratio = (Total Monthly Debt Payments / Gross Monthly Income) × 100
Worked Example
Using the Debt-to-Income Ratio Calculator: apply the formula above to your input values. For instance, DTI Ratio = (Total Monthly Debt Payments / Gross Monthly Income) × 100. The tool performs each step instantly and shows the result.
Frequently Asked Questions
What is a debt-to-income ratio?
It is your total monthly debt payments divided by your gross monthly income, expressed as a percentage lenders use to gauge risk.
What DTI do lenders want to see?
Many mortgage lenders prefer a DTI of 36% or below, and often cap it around 43% for qualified loans.
How can I lower my DTI?
Pay down debt, avoid new loans, or increase income; even one paid-off balance can noticeably improve your ratio.