Last updated October 10, 2026 · Report an error
Debt-to-income ratio is one of the first numbers a lender checks when reviewing a loan or mortgage application — a simple ratio that can make or break approval. This calculator finds your DTI ratio from your monthly debt payments and gross income, and classifies it against common lending guideline ranges.
How it works
Enter your total monthly debt payments (loans, credit cards, etc.) and your gross monthly income. The calculator divides the two to find your DTI ratio as a percentage, then classifies it against typical lending thresholds.
- Enter total monthly debt payments ($).
- Enter gross monthly income ($).
- Click Calculate to see your results.
Examples
A borrower with $1,800 in monthly debt and $6,000 income
This gives a DTI ratio of 30%, classified as "Healthy" — comfortably within most lenders' preferred range.
Who should use it
- Checking your DTI ratio before applying for a mortgage or major loan.
- Understanding how much additional debt you could take on while staying within a target DTI range.
Industry applications
- Mortgage lending and underwriting
- Personal finance and credit planning
Advantages
- Matches the standard formula lenders use for DTI calculations.
- Classifies the result against common lending guideline ranges for context.
Limitations
- Classification thresholds are general guidelines — specific lenders and loan programs may use different cutoffs.
Common mistakes to avoid
- Including non-debt expenses (like groceries or utility bills) in the monthly debt figure, which overstates the ratio.
- Using net (take-home) income instead of gross income, which understates the ratio compared to how lenders actually calculate it.
Best practices
- Use gross (pre-tax) income and only recurring debt obligations, matching how most lenders calculate DTI for loan applications.
Tips
- Paying down even one high-payment debt (like a car loan) before applying for a mortgage can meaningfully improve your DTI ratio and loan terms.
Frequently asked questions
Yes, with no signup and no limit on how many calculations you run.
Recurring debt obligations like mortgage or rent, car loans, student loans, credit card minimum payments, and personal loans — not everyday living expenses like groceries or utilities.
Many lenders consider 36% or below ideal, up to 43% acceptable for many mortgage programs, and above 43-50% high risk — but exact thresholds vary by lender and loan type.
No — DTI compares debt payments to income, while credit utilization compares credit card balances to credit limits; they measure different things and both matter to lenders.