Debt-to-Income (DTI) Ratio Calculator
Find your debt-to-income ratio, the figure lenders use to judge you.
What DTI tells lenders
Your debt-to-income ratio compares what you owe each month with what you earn before tax. Lenders use it to judge whether you can take on a new loan. A common guide is no more than 28% for housing and 36% for all debts, with many mortgage programs allowing up to about 43%.
Example
On 6,000 of monthly income, debts of 2,350 (housing 1,500, car 350, student loan 250, cards 150 and other 100) give a back-end ratio of 39.2% and a front-end ratio of 25%.
Rent, utilities and everyday living costs are not debts, so only add loan and card payments. To lower your DTI, pay down debt or increase income.
Frequently asked questions
What is a good DTI?
Below 36% is generally seen as good. Lenders set their own limits, which can be higher for some loans.
Do I include rent?
Include rent when you are checking your current position. For a mortgage application, lenders use the new housing payment instead.
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