Why Use This DTI Calculator
Your debt-to-income ratio is one of the most important numbers in your financial life. Lenders use it to determine if you qualify for mortgages, car loans, personal loans, and credit cards. Our debt to income calculator helps you:
- 💰 Calculate Your DTI — instantly see your debt-to-income ratio as a percentage.
- 🏠 Check Loan Eligibility — see if you qualify for a mortgage (28/36 rule).
- 📊 Visual Breakdown — understand exactly where your money goes.
- 📈 Track Changes — see how paying down debt or increasing income affects your DTI.
- 🔒 100% Private — all calculations run locally in your browser.
What Is Debt-to-Income Ratio (DTI)?
Your debt-to-income ratio is the percentage of your gross monthly income that goes toward paying your monthly debts. It’s one of the most important metrics lenders use to evaluate your financial health.
The Formula:
DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
For example, if you have $2,000 in monthly debt payments and earn $6,000 in gross monthly income, your DTI is:
DTI = ($2,000 ÷ $6,000) × 100 = 33.3%
DTI Categories & What They Mean
| DTI Range | Category | What It Means |
|---|---|---|
| 0 – 20% | Excellent | You have very manageable debt. Lenders will view you favorably. |
| 21 – 36% | Good | You’re managing debt well. Most lenders will approve you. |
| 37 – 42% | Acceptable | You may qualify for loans but could face higher rates. |
| 43 – 49% | High | Loan approval may be difficult. Consider reducing debt. |
| 50%+ | Very High | You’re carrying a heavy debt load. Seek debt counseling. |
The 28/36 Rule for Mortgage Qualification
Lenders use the 28/36 rule to qualify borrowers for mortgages:
| Rule | Description |
|---|---|
| 28% Rule | Your housing expenses (mortgage payment, taxes, insurance) should not exceed 28% of your gross monthly income. |
| 36% Rule | Your total debt payments (housing + all other debts) should not exceed 36% of your gross monthly income. |
This calculator shows you both benchmarks so you know exactly where you stand.
How to Use This DTI Calculator
- Enter your total monthly debt payments — include mortgage/rent, car loans, credit card payments, student loans, personal loans, alimony, and child support.
- Enter your gross monthly income — your total income before taxes and deductions.
- View your results — see your DTI ratio, assessment, and loan eligibility.
- Check the 28/36 rule — see your max housing payment and max total debt payment.
The tool updates instantly as you adjust any input — no “Calculate” button required.
Frequently Asked Questions
What is debt-to-income ratio (DTI)?
Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward paying your monthly debts. It’s a key metric lenders use to evaluate your ability to manage monthly payments and repay loans.
How is DTI calculated?
DTI is calculated by dividing your total monthly debt payments by your gross monthly income, then multiplying by 100. The formula is: DTI = (Total Monthly Debt ÷ Gross Monthly Income) × 100.
What is a good DTI ratio?
A DTI of 36% or less is generally considered good. 37-42% is acceptable but may require additional scrutiny. 43-49% is high and may limit loan options. 50% or above is very high and indicates significant financial strain.
What is the 28/36 rule for mortgages?
Lenders use the 28/36 rule to qualify borrowers: your housing expenses (mortgage payment, taxes, insurance) should not exceed 28% of your gross income, and your total debt payments should not exceed 36% of your gross income.
What debts are included in DTI calculation?
Include mortgage or rent, car loans, credit card minimum payments, student loans, personal loans, alimony, and child support. Exclude utilities, groceries, insurance premiums, and other living expenses.
Can I lower my DTI ratio?
Yes — you can lower your DTI by paying down existing debts, increasing your income, or both. Even a small reduction can improve your loan eligibility.
Is my data stored anywhere?
No. All calculations run locally in your browser. No data is sent to any server.