Debt-to-Income Ratio Calculator
Check your debt-to-income ratio to see if you qualify for mortgages, auto loans, and other credit. A lower DTI improves your odds of approval.
Updated for 2026 · Uses current interest rate data
Your numbers
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Your debt-to-income ratio
Total monthly debt payments
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Your gross monthly income
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Your DTI rating
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Estimated max mortgage payment
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This calculator estimates loan eligibility based on DTI alone. Lenders use many other factors: credit score, down payment, employment history, debt reserves, property type, and loan amount. This is educational only, not financial or lending advice.
Understanding Your Debt-to-Income Ratio
Your debt-to-income ratio is one of the most important numbers lenders look at. It tells them exactly how much of your income is already committed to debt payments each month.
Why Lenders Care About DTI
When you apply for a mortgage, auto loan, or credit card, lenders want to know: can you afford another payment? Your DTI shows them what percentage of your income is already spoken for. A high DTI means you have less room in your budget for a new loan.
Most mortgage lenders cap DTI at 43-50%, though some will go higher with excellent credit or a large down payment. Auto lenders are typically more flexible.
DTI Ranges Explained
- Below 20%: Excellent. You have plenty of borrowing power and low financial stress.
- 20-35%: Good. Healthy debt levels with room to borrow more if needed.
- 36-43%: Fair. Approaching lender limits. Still approvable but less room for new debt.
- 44-50%: Poor. At or near maximum for most lenders. Limited approval odds.
- Above 50%: High risk. Most mainstream lenders will decline. Consider debt reduction first.
How to Improve Your DTI
Improving your DTI takes one or both of these: increase income or decrease debt payments. Even paying off one credit card can meaningfully improve your ratio and approval odds.
FAQ
Does DTI include taxes?
No. DTI is calculated on gross income (before taxes), not take-home pay. This gives lenders a consistent way to compare borrowers regardless of tax situation.
What debts count toward DTI?
Fixed monthly debt payments: mortgages, car loans, student loans, personal loans, and credit card minimums. Not counted: utilities, groceries, insurance premiums (though mortgage insurance does count).
If I pay off a credit card, does it improve my DTI?
Yes, significantly. Each dollar of debt payment you eliminate improves your ratio. That freed-up monthly payment is now available in your budget.
Can I get a mortgage with 50% DTI?
Unlikely with conventional loans. FHA loans may go up to 50-55% with compensating factors like savings, excellent credit, or job stability. Talk to a loan officer about your specific situation.