⚖️ Debt-to-Income Ratio Calculator

Understanding Debt-to-Income Ratio

Your debt-to-income (DTI) ratio compares your total monthly debt payments to your gross monthly income. Lenders use this ratio to evaluate your ability to manage monthly payments and repay borrowed money. A lower DTI indicates a better balance between debt and income.

DTI Guidelines

• 20% or less: Excellent — lenders view you as a low-risk borrower.
• 21-36%: Good — manageable debt level for most lenders.
• 37-43%: Acceptable — may qualify for loans but at higher rates.
• 44%+: High Risk — most lenders will hesitate to approve new credit.

Most mortgage lenders prefer a DTI of 43% or lower. To improve your DTI, focus on paying down existing debts or increasing your income.