Lenders use DTI to judge how much debt you can handle. Lower is better; under ~36% is generally considered healthy.
How the Debt-to-Income Ratio Calculator works
DTI = total monthly debt payments ÷ gross monthly income × 100. Lenders use it to judge how much new debt you can handle.
Example calculation
$1,800 of monthly debt on $6,000 gross income is a 30% DTI — generally considered healthy.
Tips for using the Debt-to-Income Ratio Calculator
- Under ~36% is healthy; many mortgages cap around 43%.
- Lenders use gross (pre-tax) income.
- Lower DTI improves approval odds and rates.
Debt-to-Income Ratio Calculator — frequently asked questions
- What DTI do lenders want?
- Many mortgages prefer ≤36–43% total DTI, though programs vary.
- Gross or net income?
- Lenders use gross (pre-tax) monthly income for DTI.
- What DTI do mortgage lenders want?
- Often 43% or less total, though some programs allow higher with compensating factors.
- How do I lower my DTI?
- Pay down balances or increase income; avoid taking on new debt before applying.
Related calculators
Debt Payoff Calculator · Credit Card Payoff Calculator · Credit Card Minimum Payment Calculator · Mortgage Calculator · Loan Calculator · Auto Loan Calculator