Money Calculators Hub

Debt-to-Income Ratio Calculator

Use this calculator to determine your debt-to-income (DTI) ratio, a key financial metric that lenders use to evaluate your ability to manage monthly payments and repay debts.

Debt-to-Income Ratio Calculator

Calculate your debt-to-income ratio to gauge your financial health and loan qualification potential.

Debt-to-Income Ratio Calculator

Monthly Income

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$
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$
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$

Monthly Debt Payments

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$
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$
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$
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$
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$
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$

Your Debt-to-Income Analysis

Total Monthly Income
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$0.00
Total Monthly Debt Payments
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$0.00
Debt-to-Income (DTI) Ratio
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0.00%
DTI Status
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Excellent
Housing Ratio (Front-End)
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0.00%
Housing Ratio Status
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Excellent

What This Means

You're well within recommended DTI limits, indicating a healthy financial position.

How to Use This Calculator

This calculator helps you make informed financial decisions by providing accurate estimates based on the information you provide. Follow these steps:

1

Enter Your Details

Fill in all required fields with your financial information.

2

Adjust Parameters

Use sliders and toggles to customize scenarios and assumptions.

3

View Results

Get instant calculations that update as you change inputs.

4

Compare Options

Try different scenarios to find the best financial solution.

Understanding Your Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is a financial measurement that compares your total monthly debt payments to your gross monthly income. This ratio is expressed as a percentage and is a key indicator of your financial health.

Why Your DTI Ratio Matters

Your DTI ratio is important for several reasons:

  • Loan Approval: Most lenders use DTI as a key factor in loan approval decisions
  • Interest Rates: A lower DTI ratio may help you qualify for better interest rates
  • Financial Health: Your DTI ratio provides insight into your overall financial well-being
  • Mortgage Qualification: For mortgages, lenders typically prefer a DTI ratio of 43% or lower

Types of DTI Ratios

There are two main types of DTI ratios that lenders consider:

  • Front-End Ratio: Only includes housing-related expenses (mortgage/rent, property taxes, insurance) relative to income
  • Back-End Ratio: Includes all debt payments, including housing, credit cards, loans, etc., relative to income

How to Improve Your DTI Ratio

If your DTI ratio is higher than you'd like, consider these strategies:

  • Pay down existing debt, starting with high-interest accounts
  • Avoid taking on new debt
  • Increase your income through a raise, side job, or additional hours
  • Refinance or consolidate debts to lower monthly payments
  • Sell assets to pay off debt if appropriate