Debt-to-Income (DTI) Ratio Calculator

DTI Ratio Calculator

Monthly Debt Payments ($): Gross Monthly Income ($):

 

Calculator for the Debt-to-Income (DTI) Ratio What exactly is DTI Ratio?  The ratio of your gross monthly income to your debt payments is known as the debt-to-income (DTI) ratio.  It can be used by lenders to assess your ability to manage your debt and repay loans. Formula:

 Ratio of DTI (%) =

 (

 Total Monthly Payments for Debt Monthly Gross Income )

 ×

 100

 DTI Ratio (percent) = Monthly Gross Income Total Monthly Payments for Debt ​

 )×100

 How to Make Use of the Calculator: Enter the total amount you owe each month in debt, such as mortgage, credit card, or loan payments.  Please enter your monthly gross income (before taxes).  Determine your DTI ratio.  DTI Groupings: 36%: Good (manageable debt). 36%-43%: Acceptable (though it might make it harder to get loans approved). > 43%: Risky (lenders may reject applications)

 Why is DTI crucial? aids in loan approval (for mortgages, auto loans, and so on). demonstrates financial wellness (a lower DTI indicates greater stability). guides debt management and budgeting.  Try figuring yours out below!