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Debt-to-Income Ratio Calculator

Find your DTI ratio for loan eligibility.

How it is calculated

The debt-to-income ratio compares what you owe each month with what you earn: DTI = monthly debt payments ÷ monthly income × 100. Debt payments include recurring obligations such as rent or mortgage, loan instalments, minimum credit card payments and other fixed debts. Income is usually gross, before tax, as lenders measure it. The result is a percentage with two decimals. The tool also shows income − debt payments, the money left after these payments (not a full budget, as living costs and taxes are not subtracted). Income must be above zero. Lenders set their own limits, and the acceptable level varies by country and loan type.

Worked example

Monthly debt payments are 1,800 and monthly income is 6,000. DTI = 1,800 / 6,000 = 0.30, shown as 30.00%. The money left after those payments is 6,000 − 1,800 = $4,200.00. So 30 cents of every dollar of income goes to debt. Raising the payments to 2,400 would move the ratio to 2,400 / 6,000 = 40.00%.

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Common mistakes

  • Including everyday costs such as groceries and utilities, which are not debt payments.
  • Using the total loan balance rather than the monthly payment.
  • Mixing gross and net income when comparing against a lender's limit.
  • Reading the left-over amount as free cash, although tax and living costs still come out of it.

Sources

About this calculator

This calculator divides your total monthly debt payments (credit cards, car loans, student loans, existing mortgage) by your gross monthly income to produce your debt-to-income (DTI) ratio, expressed as a percentage.

Mortgage lenders lean on this number heavily: conventional loans typically want a DTI under roughly 36–43%, and a lower ratio generally means better approval odds and interest rates. It's used by anyone preparing to apply for a mortgage, auto loan or personal loan who wants to know where they stand before a lender pulls the number themselves.

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  • Editorial team

    To see how a new loan would change your position, add its expected monthly payment to the debt box and read the ratio again. Count only recurring obligations, and use gross income, since that is how lenders usually measure it. The leftover amount shown is not a budget, because food, utilities and taxes still have to come out of it. Each bank sets its own limits, so ask yours what it applies. Which new payment are you considering adding?

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