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Debt-to-Income (DTI) Ratio Calculator

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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.