📊 Debt-to-Income Ratio Calculator
Calculate your DTI ratio to see if you qualify for a mortgage or loan — instantly.
💰 Financial Disclaimer: This calculator provides estimates for educational purposes only and should not be considered professional financial, tax, or investment advice. Results may vary based on your individual circumstances. Consult a qualified financial professional for personal guidance.
DTI Ratio Ranges Explained
| DTI Ratio | Rating | Mortgage Eligibility |
|---|---|---|
| Below 28% | ✅ Excellent | Best rates available |
| 28% – 36% | ✅ Good | Easily qualifies for most loans |
| 37% – 43% | ⚠️ Acceptable | May qualify; lender scrutiny |
| 44% – 50% | ⚠️ High | FHA loans only; harder to qualify |
| Above 50% | ❌ Too High | Most lenders will decline |
Frequently Asked Questions
What is a good debt-to-income ratio?
Under 36% is considered good for most lenders. Under 28% is excellent. Most conventional mortgages require a back-end DTI of 43% or less.
What counts as debt for DTI?
Monthly debt payments: mortgage/rent, car loans, student loans, minimum credit card payments, child support, and other loan payments. NOT utilities, groceries, or insurance.
What is the 28/36 rule?
No more than 28% of gross income on housing (front-end DTI), and no more than 36% on all debt (back-end DTI). The classic lender standard.
How do I lower my DTI?
Pay down existing debts (especially high balances), increase income, avoid new debt before loan applications. Even small debt reductions can move you into a better DTI tier.
When to Use This Calculator
Use this before applying for a mortgage, car loan, or personal loan to see how lenders will evaluate your application. A DTI above 43% often prevents mortgage qualification; most lenders prefer below 36%.
Common Mistakes to Avoid
- Including only credit card and loan payments — your DTI includes ALL recurring monthly obligations: rent, student loans, car payments, and minimum credit card payments.
- Using gross income instead of net — lenders use gross (pre-tax) income for DTI, not your take-home pay.
- Not recalculating after taking on new debt — any new loan changes your DTI and can affect existing loan applications.