Calculate your Debt-to-Income ratio to assess your loan eligibility.
Total income before taxes.
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When you apply for a mortgage, car loan, or credit card, lenders don't just look at your credit score. They also look at your Debt-to-Income (DTI) Ratio. This number tells them how much of your monthly income is already eaten up by debt payments. Our DTI Calculator helps you see where you stand before you apply.
The formula is simple division:
Note that this uses Gross Income (pre-tax), not your take-home pay. It includes debts like rent/mortgage, student loans, auto loans, and credit card minimums. It generally does not include expenses like groceries, utilities, or gas.
Considers ONLY housing costs (mortgage PITI or rent) divided by income. Lenders like this under 28%.
Considers ALL monthly debt payments. This is the main number this calculator provides and is the more important metric.
You have two options: increase your income (side hustle, raise) or decrease your debt (pay off loans, refinance for lower monthly payments). Paying off a credit card completely removes that minimum payment from the calculation.
Indirectly. Credit bureaus don't know your income, so DTI isn't on your credit report. However, high credit card balances (which increase DTI) also increase your Credit Utilization Ratio, which does hurt your score.