Finance
Debt-to-Income Ratio Calculator
Calculate your DTI ratio from total monthly debt payments and gross monthly income. See how your ratio compares to lender requirements.
Monthly Debt Payments
Debt-to-Income Ratio
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DTI Reference
≤ 28% Excellent29–36% Good37–43% Acceptable44%+ High
Most lenders prefer a DTI below 36%. FHA loans allow up to 50%.
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DTI Formula
Debt-to-Income Ratio
DTI (%) = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
DTI Benchmarks
| DTI Range | Assessment | Lender View |
|---|---|---|
| ≤ 28% | Excellent | Strong candidate for best rates |
| 29–36% | Good | Well within conventional limits |
| 37–43% | Acceptable | Qualifies for most loans |
| 44–50% | High | FHA / non-conventional only |
| > 50% | Very High | Likely disqualified |
Frequently asked questions
What is the debt-to-income ratio?
Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments. It is calculated as: DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100. Lenders use it to assess your ability to take on additional debt.
What is a good debt-to-income ratio?
Most lenders consider a DTI below 36% as good. A DTI below 28% is considered excellent. FHA mortgage loans allow DTIs up to 50% in some cases. The lower your DTI, the more borrowing capacity you have and the better your mortgage terms are likely to be.
What debts are included in DTI?
DTI includes all recurring monthly debt obligations: mortgage or rent, car loans, student loans, minimum credit card payments, personal loans, child support, and alimony. It does not include utilities, insurance premiums, groceries, or other living expenses.
How can I lower my debt-to-income ratio?
You can lower DTI by increasing gross income (raise, second job, side income) or decreasing total monthly debt payments (pay down balances, consolidate debt at lower rates, or eliminate individual debts). Avoid taking on new debt before applying for a mortgage.
How does DTI affect mortgage approval?
Most conventional mortgage lenders prefer a DTI of 43% or lower. Fannie Mae allows up to 50% with strong compensating factors. FHA loans also go up to 50% in some cases. A higher DTI usually means higher interest rates or outright denial — lenders see it as a sign of financial strain.