⚖️ Debt-to-Income Ratio Calculator

Enter your monthly debt payments and gross income to instantly calculate your DTI ratio — and see exactly how lenders evaluate your loan application.

Monthly Debt Payments

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Gross Monthly Income

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📊 Lender DTI Limits

Loan TypeMax DTI
Conventional43–45%
FHA Loan50%
VA Loan41%
Personal Loan43%
Auto Loan50%

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How to Use This DTI Calculator

  1. 1Enter each monthly debt payment — rent/mortgage, car, student loans, credit card minimums, other loans.
  2. 2Enter your gross monthly income (before taxes, all sources combined).
  3. 3Click Calculate My DTI — see your ratio instantly with a visual meter and lender verdict.

What Is a Good DTI Ratio in 2026?

Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments. It's one of the most important numbers lenders check when evaluating a loan application — often more important than credit score for mortgage qualification.

The formula is simple: DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100. If you pay $1,850/month in debts and earn $5,000/month gross, your DTI is 37%.

DTI RangeRatingWhat It Means
Below 20%ExcellentBest rates, easy approval on any loan
20% – 35%GoodApproved for most loans, competitive rates
36% – 49%FairMortgage approval possible, higher rates
50%+High RiskLoan approval difficult, work on reducing debt first

What Counts as Debt in DTI?

Include: mortgage or rent payment, car loan payments, student loan minimum payments, credit card minimum payments, personal loan payments, child support or alimony, any other recurring debt obligations.

Do NOT include: utilities, groceries, health insurance, subscriptions, gym memberships, gas, or entertainment. Only actual debt payments with a fixed obligation count.

How to Lower Your DTI

  • Pay down credit card balances — this reduces your minimum monthly payment requirement
  • Pay off small loans entirely — eliminating one debt payment completely has an outsized effect on DTI
  • Increase your income — a side job, raise, or second income source raises the denominator
  • Avoid new debt before applying — don't take on a car loan or new credit card 3–6 months before a mortgage application
  • Refinance high-payment loans — a lower monthly payment (even on the same balance) reduces DTI

Frequently Asked Questions

Below 36% is considered good by most lenders. Below 20% is excellent and qualifies you for the best rates on any loan type. For mortgages specifically, most conventional lenders require 43% or below. If your DTI is above 50%, focus on paying down debt before applying for major loans.
DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100. Example: $1,500 monthly debts ÷ $5,000 gross income = 0.30 × 100 = 30% DTI. Include all minimum required debt payments. Use gross income (before taxes), not take-home pay.
Conventional loans typically require DTI at or below 43%, though Fannie Mae allows up to 45% with strong compensating factors like high credit score or large down payment. FHA loans allow up to 50% in some cases. VA loans prefer under 41% but are more flexible. The lower your DTI, the better your approval odds and interest rate.
Yes — your current rent payment is included in DTI when applying for non-mortgage loans. For mortgage applications, lenders typically use your proposed new mortgage payment (PITI: principal, interest, taxes, insurance) in place of your current rent to calculate your "front-end DTI." Both front-end and back-end DTI are evaluated for home loans.
DTI does not directly affect your FICO credit score — it is not part of the score calculation. However, lenders check DTI separately from your credit score. High debt levels that produce a high DTI also often lead to high credit utilization, which does lower your score. Pay down balances to improve both simultaneously.