Debt-To-Income Ratio Calculator

Our Debt-To-Incom Ratio Calculator helps you understand your financial stability by calculating the proportion of your income that goes toward debt payments. This ratio is a critical metric for lenders and financial planning, giving you insight into whether you can comfortably manage additional loans.

Debt-to-Income Ratio Calculator

Easily calculate your Debt-to-Income (DTI) ratio using our calculator.

How to Use the Calculator

  1. Monthly Debt Payments: Enter the total of all monthly debt payments. Example: If your mortgage payment is $1,200, car loan is $300, and credit card minimums total $200, your total debt payments are $1,700.
  2. Gross Monthly Income: Provide your total pre-tax monthly income. Example: If you earn $5,000 per month before taxes, input $5,000.
  3. Calculate: Click ‘Calculate’ to see your DTI ratio instantly. Example Calculation: With $1,700 in debt payments and $5,000 in income, your DTI ratio is 34%.

Insight: If planning to buy a home, understanding your DTI can help you prepare for mortgage approval. Our Net Worth Calculator offers a complete view of your assets and liabilities, assisting in comprehensive financial planning.

Strategies to Lower Your DTI

  • Pay Down Debt: Focus on high-interest debts first to free up income.
  • Increase Income: Consider side jobs or negotiating a raise.
  • Budget Wisely: Cut unnecessary expenses to allocate more funds toward debt repayment.

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