Debt-to-Income Ratio Calculator
Find out if your DTI meets lender requirements. See color-coded results aligned to mortgage qualification thresholds.
Your Debt-to-Income Ratio
20.0%
GoodMonthly Income
$6,000.00
Monthly Debt
$1,200.00
Lender guidelines: Most lenders prefer a DTI below 36%. FHA loans allow up to 43%, and some conventional loans up to 50% with strong compensating factors.
Understanding Your Debt-to-Income Ratio
Your debt-to-income ratio is one of the most important numbers in personal finance — especially if you're planning to apply for a mortgage, car loan, or personal loan. It's calculated simply: total monthly debt payments ÷ gross monthly income × 100.
The color-coded result in this calculator reflects four common categories used by lenders. A DTI under 20% (Excellent) qualifies you for the best rates and highest loan amounts. Between 20–35% is Good and will qualify for most conventional loans. Between 36–50% is Fair — you'll still qualify for some products but may face higher rates or stricter terms. Above 50% (Poor) makes it difficult to obtain new credit and signals that debt reduction should be a priority before applying.
Lenders evaluate two related metrics: the "front-end ratio" (housing costs only divided by income, ideally under 28%) and the "back-end ratio" (all debts divided by income, ideally under 36%). If you're preparing to apply for a mortgage, use our Home Affordability Calculator to model a purchase price that keeps both ratios within guidelines.
One important note: DTI uses gross income (before taxes), not take-home pay. This means your actual financial picture may feel tighter than the DTI number suggests. Financial advisors often recommend targeting a DTI of 20% or less for comfortable financial flexibility.