Calculate your DTI ratio — the percentage of gross monthly income that goes toward debt payments. Lenders use this to assess creditworthiness.
Calculate your debt-to-income (DTI) ratio with our free calculator, a key number lenders use to evaluate mortgage, auto loan, and other credit applications.
Debt-to-Income Ratio = Total Monthly Debt Payments ÷ Gross Monthly Income × 100. Lenders use this to gauge how much of your income is already committed to debt obligations.
Generally, a DTI below 36% is considered favorable by most lenders, though specific thresholds vary by loan type and lender.
Yes, housing costs are typically included in total monthly debt for DTI calculations, alongside credit cards, auto loans, and other debts.
Either pay down existing debt to reduce monthly obligations, or increase your income, both improve the ratio, though paying down debt is often the more directly controllable option.
No, acceptable DTI thresholds vary by loan type, mortgages, auto loans, and personal loans may all have different requirements.