Calculator
Debt-to-Income (DTI) Calculator
Calculate your DTI ratio to see how lenders evaluate your ability to take on new debt. Enter your monthly income and existing debt payments to get your ratio instantly.
TL;DR — Debt-to-Income Ratio
DTI = Monthly Debt Payments ÷ Gross Monthly Income. Under 36% is excellent for most loans. 36-43% is acceptable. 43-50% is borderline. Over 50% means you should pay down debt before applying.
Calculate Your DTI
Enter your monthly income and debt payments below.
Your total income before taxes (salary, wages, etc.)
Personal loans, child support, alimony, etc.
Your DTI Analysis
What is Debt-to-Income Ratio?
Your debt-to-income ratio (DTI) compares your total monthly debt payments to your gross monthly income. Lenders use this number to assess whether you can comfortably take on additional debt.
The formula: DTI = (Total Monthly Debt Payments / Gross Monthly Income) x 100
DTI Ranges and What They Mean
- Under 36%: Excellent. You’re in a strong position for most loans with competitive rates.
- 36-43%: Acceptable. Most lenders will approve you, though rates may be slightly higher.
- 43-50%: Borderline. Some lenders will approve, but options become limited.
- Over 50%: Challenging. You may need to pay down debt before qualifying for new credit.
Tip: Front-end vs. Back-end DTI
Some lenders look at “front-end” DTI (just housing costs) and “back-end” DTI (all debts). This calculator shows your back-end DTI, which most personal loan lenders use.
How to Lower Your DTI
If your DTI is higher than you’d like, here are strategies to improve it:
- Pay down existing debt: Even small reductions in credit card balances help.
- Avoid taking on new debt: Hold off on new car loans or credit cards before applying.
- Increase your income: A raise, side job, or bonus can improve your ratio.
- Consider a co-borrower: Adding someone with income can improve your combined DTI.
- Refinance existing loans: Lower payments through refinancing improve your ratio.
Debt-to-Income FAQ
What debts are included in DTI?
Include mortgage/rent, car loans, student loans, credit card minimums, personal loans, child support, and any other recurring debt payments. Don’t include utilities, insurance, groceries, phone bills, or subscriptions—these aren’t considered debt by lenders.
Should I use gross or net income?
Use gross income (before taxes)—that’s the standard lenders use. If you’re self-employed, use your net self-employment income after business expenses but before personal taxes. Lenders may ask for tax returns to verify.
What’s a good DTI for a personal loan?
Most personal loan lenders prefer a DTI under 36%, though some will approve up to 50%. The lower your DTI, the better your chances of approval and the better rates you’ll qualify for. Under 30% is considered excellent.
Does DTI affect my credit score?
No, DTI is not a factor in your credit score. However, high credit utilization (credit card balances vs. limits) does affect your score. DTI and credit score are both important to lenders but calculated separately.
What’s the difference between front-end and back-end DTI?
Front-end DTI is just your housing costs (mortgage, taxes, insurance) divided by income—used mainly for mortgages. Back-end DTI includes all monthly debt payments and is what most personal loan lenders use. This calculator shows back-end DTI.
How can I lower my DTI quickly?
The fastest ways: pay down credit card balances, pay off small loans entirely, or increase your income. You can also refinance existing loans for lower payments or add a co-borrower with income. Avoid taking on new debt before applying.
Do lenders calculate DTI including the new loan payment?
Yes, lenders calculate your projected DTI including the new loan’s estimated monthly payment. So even if your current DTI is 35%, a large new loan payment could push you above their limit. Factor this in when deciding how much to borrow.
Ready to check your rate?
See personalized offers from multiple lenders without affecting your credit score.
Explore Loan OptionsOr get your Free Property Report — instant satellite measurements, no signup required.