How it works
Calculate your DTI ratio to see if you qualify for a mortgage or other loans.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
3-
?income=Gross Monthly IncomeNumber · Optional · Default: 6,000
-
?mortgage=Mortgage / RentNumber · Optional · Default: 1,500
-
?otherDebts=Other Monthly Debt PaymentsNumber · Optional · Default: 500
Outputs
1-
resultResultText · Primary output
result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.
Assess your borrowing health and loan eligibility
Description
The Debt-to-Income (DTI) Ratio Calculator is a critical tool for anyone planning to apply for a major loan, particularly a mortgage. It compares your total monthly debt obligations against your gross monthly income to determine your “DTI percentage,” provide a risk status, and help you understand how lenders view your financial health.
Inputs
- Gross Monthly Income: Your total household income before taxes and other deductions ($).
- Mortgage / Rent: Your current monthly housing payment ($).
- Other Monthly Debt Payments: The sum of all other recurring debt commitments, such as car loans, student loans, and minimum credit card payments ($).
Outputs
- Debt-to-Income Ratio: The final percentage representing your debt-to-income balance.
- Risk Status:
- Good: Typically below 36%.
- Manageable: Typically between 36% and 43%.
- Risky: Typically above 43%.
- Summary Advice: An explanation of what your specific ratio means for your loan eligibility.
Chart
- N/A: This tool provides a clear status indicator and expert summary.
“Good to Know”
- Most conventional mortgage lenders look for a DTI ratio of 36% or lower, with no more than 28% of that going specifically toward housing.
- The 43% mark is often the “hard cap” for many mortgage types, as it is the highest DTI a borrower can have and still get a Qualified Mortgage.
- Lowering your DTI can be done in two ways: increasing your income or (more commonly) paying down existing debts to reduce your monthly obligations.
Examples
Example 1: Healthy Finances
- Input:
- Income: $6,000
- Mortgage: $1,500, Other Debt: $500
- Output:
- DTI: 33.3%
- Status: Good
Example 2: Borderline Case
- Input:
- Income: $5,000
- Rent: $1,400, Debt: $600
- Output:
- DTI: 40.0%
- Status: Manageable
Example 3: Over-Leveraged
- Input:
- Income: $4,000
- Rent: $1,600, Debt: $800
- Output:
- DTI: 60.0%
- Status: Risky