Divide your monthly debt payments by gross monthly income to get your DTI ratio.
How debt-to-income ratio is worked out
Lenders use your debt-to-income ratio to judge how much of your income already goes to debt. Enter your monthly debt payments and gross monthly income to see your DTI and where it falls.
Lower is better; many lenders prefer 36% or less.
Using the calculator
- Enter your total monthly debt payments.
- Enter your gross monthly income.
- Read your DTI and rating.
The calculation
DTI = monthly debt payments ÷ gross monthly income × 100
Worked example
On the values this calculator opens with, the debt-to-income is 30%. Underneath, Rating comes out at Healthy and Room to 36% at $300/mo. Change any field and every figure updates as you type.
Common questions
What is a good DTI ratio?
Under 36% is generally considered healthy; 36–43% is manageable; above 43% can make borrowing harder.
What counts as debt?
Recurring obligations like loan, card, auto and housing payments — not everyday spending like groceries.
Why do lenders care?
A lower DTI suggests more room in your budget to take on and repay a new loan.