Debt-to-Income Calculator
Calculate your debt-to-income ratio using your total monthly debt payments and gross monthly income. This is commonly used when applying for mortgages, auto loans, and other financing.
Include things like credit cards, student loans, car loans, and housing payments.
Gross income is your income before taxes and deductions.
Formula
Debt-to-Income Ratio = (Monthly Debt Payments / Gross Monthly Income) * 100
Frequently Asked Questions
What is debt-to-income ratio?
Debt-to-income ratio, or DTI, shows what percentage of your gross monthly income goes toward debt payments.
Why is DTI important?
Lenders often use DTI to evaluate whether you can reasonably afford a mortgage, auto loan, or other monthly obligation.
What is considered a good DTI?
Many lenders prefer a DTI under 36 percent, though loan type and lender guidelines can vary.