Finance

Debt-to-Income Ratio Calculator

Calculate DTI from monthly debt payments and gross monthly income.

This result shows the share of gross monthly income that goes toward monthly debt payments, so a lower percentage leaves more income free for other costs.

Formula

DTI equals monthly debt payments divided by gross monthly income, times 100.

How it works

Lenders use DTI to judge affordability — lower is generally stronger. This uses gross income before tax, and debt payments include loans and cards, not rent in some definitions, so check which version a lender uses.

Worked example

For example, $1200 divided by $5000, times 100, gives a debt-to-income ratio of 24.00%.

FAQs

What is a good DTI?
Under 36% is commonly seen as comfortable; above 43% can limit borrowing.

Does rent count?
Some lenders include housing costs, others use debt only — ask which they use.

Can I lower my DTI?
By paying down debt or raising income; the ratio moves with both.

Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.

Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.

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