Debt-to-Income Ratio Calculator
Check Your Loan Readiness
Use this free Debt-to-Income (DTI) Ratio Calculator to find out how much of your monthly income is spent on debt payments. Lenders use this percentage to assess loan eligibility, so knowing your DTI can help you plan smarter and improve your chances of approval.
Monthly Income
Monthly Debt Payments
| Loan Type | Maximum DTI | Notes |
|---|---|---|
| Conventional Loans | ≤ 43% | Standard mortgage loans |
| FHA Loans | ≤ 50% | Government-backed mortgages |
| VA Loans | ≤ 41% | Veterans Affairs loans |
| Auto Loans | ≤ 40% | Car financing |
| Personal Loans | ≤ 45% | Unsecured personal loans |
Your DTI ratio compares your monthly debt payments to your gross monthly income. It helps lenders assess how comfortably you can handle additional debt.
DTI = (Total Monthly Debt Payments / Gross Monthly Income) × 100
- • Pay down high-interest debts first (like credit cards)
- • Avoid new loans before applying for a mortgage
- • Refinance or consolidate debt for lower monthly payments
- • Increase income through a side job or promotion
- • Consider extending loan terms to reduce monthly payments
Input Parameters:
- Gross Monthly Income: $6,000
- Total Monthly Debt: $2,100
- • Mortgage: $1,500
- • Credit Card: $300
- • Auto Loan: $400
- • Student Loan: $250
- • Other: $200
Results:
- DTI = (2,100 ÷ 6,000) × 100 = 35%
- Classification: Good
- Result: You likely qualify for most loan products
What is a good debt-to-income ratio?
A good DTI ratio is below 36%. This means less than 36% of your monthly income goes toward debt payments, leaving room for other expenses and savings.
What DTI do mortgage lenders look for?
Conventional mortgage lenders typically prefer DTI ratios of 43% or lower. FHA loans allow up to 50%, while VA loans prefer 41% or lower.
How can I reduce my DTI ratio quickly?
The fastest way to reduce DTI is to pay down revolving debt like credit cards. Increasing your income also helps, but takes more time to implement.
Does my DTI affect my credit score?
DTI doesn't directly affect your credit score, but high debt levels can. Lenders use both DTI and credit scores to assess loan applications.
What's the maximum DTI for FHA loans?
FHA loans typically allow DTI ratios up to 50%, though some lenders may have stricter requirements. Strong compensating factors can help with higher DTIs.