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Debt-to-Income Calculator
Calculate your debt-to-income ratio for loan applications
About Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a key factor lenders use to evaluate your ability to manage monthly payments and repay debts. It's calculated by dividing your total monthly debt payments by your gross monthly income.
DTI Ratio Guidelines
- Front-end DTI: Housing expenses ÷ gross income (max 28%)
- Back-end DTI: Total debt ÷ gross income (max 36%)
- Excellent: Below 20% - Very low risk
- Good: 20-30% - Low risk, good for loans
- Fair: 30-40% - Moderate risk, may need improvement
- Poor: Above 40% - High risk, difficult to get loans