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Free Debt-to-Income (DTI) Ratio Calculator
Check your borrowing power with our DTI Calculator. This is one of the key metrics mortgages lenders use to determine if you can afford a new home loan.
What is DTI?
Your Debt-to-Income Ratio compares how much you owe each month to how much you earn. It considers your gross monthly income (before tax).
Formula: DTI = (Total Monthly Debt Payments / Gross Monthly Income) x 100
Understanding Your DTI Score
- Under 36% (Healthy): Lenders love this range. You are considered a low-risk borrower.
- 36% - 43% (Manageable): Most lenders will still approve you, though you may not get the absolute best rates.
- Over 43% (High Risk): You may struggle to get approved for a qualified mortgage (QM). Consider paying down debt before applying.