Debt-to-Income Ratio Calculator
Understanding DTI Ratio
What is DTI?
Debt-to-Income (DTI) ratio is a financial measure that compares your monthly debt payments to your monthly gross income. It's expressed as a percentage and is a key factor lenders use to evaluate your borrowing risk.
DTI Guidelines
- 43% or less: Ideal for most loans
- 44-49%: May still qualify with compensating factors
- 50% or higher: May have difficulty obtaining a loan
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DTI Tips
- Include all monthly debt payments
- Use gross (pre-tax) income
- Consider both front-end and back-end DTI
- Update calculations when debts change