Debt-to-Income Ratio Calculator
Calculate your debt-to-income (DTI) ratio to assess financial health.
DTI Ratio: —
DTI = (Monthly debt ÷ Gross income) × 100
Example
Monthly debt: 1,800
Monthly income: 5,000
DTI = 36%
Monthly income: 5,000
DTI = 36%
What is the debt-to-income ratio?
The debt-to-income ratio measures how much of your income goes toward debt payments. It is widely used by lenders to evaluate loan eligibility.
Why is DTI important?
A lower DTI indicates better financial balance and higher chances of loan approval for mortgages, personal loans, and credit products.
Frequently Asked Questions
What is a good DTI ratio?
Generally, a DTI below 36% is considered healthy by most lenders.
Does this include taxes?
No. DTI uses gross income before taxes.
Can DTI be over 100%?
Yes. This means debt payments exceed income, indicating high financial risk.