Should I include rent?
Yes, rent is a housing cost included in DTI. Lenders count rent the same as mortgage payments.
Finance
Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio to understand your financial health
Assess Your Financial Stability
Determine your debt-to-income ratio to evaluate your financial health and loan eligibility
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What this calculator does
The Debt-to-Income (DTI) Ratio Calculator measures the percentage of gross income consumed by debt payments—a key financial health indicator. Lenders use DTI for loan eligibility; typical benchmarks are 36% or lower for good health, though some accept up to 43-50%.
How it works
The calculator divides total monthly debt payments by gross monthly income, expressing as a percentage. It categorizes DTI into risk levels and provides improvement scenarios showing how to reach better levels.
Formula
DTI = (Monthly Debt + Housing) ÷ Gross Income × 100. Housing Ratio = Housing ÷ Income × 100. Available Income = Income − Debt. Recommended Maximum = 0.36 × Income.
Tips for using this calculator
- Use gross income (before taxes) for lender methodology matching
- Include ALL monthly debts: mortgage, car, student loans, credit cards, child support
- Most lenders cap housing at 28% and total DTI at 36-43%
- Paying down debt improves DTI faster than income increases
- Strong credit scores may allow lower DTI requirements
Frequently asked questions
Why do lenders care about DTI with good credit?
Credit scores show payment history but not current debt burden. DTI measures how much income is committed—two people with same score may have very different capacity.
What if my DTI is above 43%?
Pay down high-interest debt aggressively, increase income, reduce housing costs, or delay major purchases until DTI improves.