DTI Ratio Calculator
Calculate your debt-to-income ratio and understand your financial health
Enter your monthly income and debt payments to see your DTI ratio and get personalized advice.
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Monthly Gross Income
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Monthly Debt Payments
What is DTI Ratio?
Your Debt-to-Income (DTI) ratio is a key metric that lenders use to evaluate your ability to manage monthly payments and repay debts. It's calculated by dividing your total monthly debt payments by your gross monthly income.
- Below 36%: Generally considered healthy
- 36% - 43%: Acceptable but could be improved
- Above 43%: May make it harder to qualify for loans
Understanding Your DTI Ratio
Why DTI Matters
- Lenders use DTI to assess your ability to manage monthly payments
- Lower DTI ratios often qualify you for better interest rates
- Helps you understand your overall financial health
DTI Ratio Guidelines
Below 36%
Ideal for most lenders
36% - 43%
Acceptable but could be improved
Above 43%
May limit loan options
Tips to Improve Your DTI Ratio
Increase Income
- • Consider a side hustle or part-time job
- • Ask for a raise or promotion
- • Look for higher-paying opportunities
Reduce Debt
- • Pay off high-interest debt first
- • Consider debt consolidation
- • Create a strict budget to pay down debt
Use our Debt Repayment Planner to create a personalized plan for improving your DTI ratio.