Debt-to-Income Ratio Calculator

How it works

The debt-to-income ratio divides your total monthly debt payments by your gross monthly income: 1,200 of payments on 4,000 of income is a DTI of 30%. It is the single number lenders use most to judge whether you can absorb another repayment. Count every recurring debt payment — mortgage or rent, car loan, personal loans, student loans, minimum card payments — but not ordinary living costs like food, utilities or insurance. Those matter to your budget, not to this ratio. As rough thresholds, most lenders treat under 35% as comfortable and start refusing above roughly 40–45%. Improving the ratio has only two levers: lower the payments (pay off the smallest loan, refinance, extend a term) or raise the income. Note that lenders use gross income, which is why your own affordability calculation should always be stricter than theirs.