Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio to understand your financial health and borrowing capacity
About This Calculator
Your debt-to-income ratio (DTI) compares how much you owe each month to how much you earn. Lenders use this ratio to gauge your ability to manage monthly payments and repay debts.
Key Features:
- Calculate both front-end and back-end DTI ratios
- See how your DTI compares to recommended levels
- Get personalized recommendations based on your ratio
- Understand how different debts affect your DTI
About Debt-to-Income Ratio
What is DTI?
Debt-to-income ratio (DTI) is a financial measure that compares your monthly debt payments to your monthly gross income. It's expressed as a percentage and helps lenders evaluate your borrowing risk.
Types of DTI
- Front-end ratio: Housing costs vs. income
- Back-end ratio: All monthly debts vs. income
- Recommended front-end: Below 28%
- Recommended back-end: Below 36%
Why DTI Matters
- Key factor in loan approval
- Indicates financial health
- Affects borrowing capacity
- Guides financial planning
Improving Your DTI
- Increase your income
- Pay down existing debt
- Avoid taking on new debt
- Refinance to lower payments
How to Use This Calculator
Enter Income
Input your monthly income:
- Gross monthly salary
- Additional regular income
- Before taxes and deductions
Housing Expenses
Include all housing-related costs:
- Mortgage or rent payment
- Property taxes
- Home insurance
- HOA or condo fees
Other Debts
Enter all monthly debt payments:
- Car loans
- Credit card minimums
- Student loans
- Other loan payments
Understanding Results
The calculator will show:
- Front-end and back-end DTI
- Debt breakdown
- Maximum recommended debt
- Risk assessment