Debt-to-Income Ratio Calculator

Use this calculator to estimate your debt-to-income ratio, often called DTI. It compares monthly debt payments with gross monthly income and helps show how much of your income is already committed to debt.

What this calculator does

The debt-to-income ratio calculator measures debt load against income.

It uses:

• gross monthly income
• monthly debt payments
• percentage calculation
• DTI rating label

The result shows your DTI percentage and a simple rating of low, moderate, high, or very high.

How to use the debt-to-income ratio calculator

Enter your gross monthly income before tax and your monthly debt payments. Include debts such as loans, credit cards, car payments, student loans, and mortgage payments where relevant.

Use the result as a planning signal, not a lender decision.

Debt-to-Income Ratio Formula

DTI ratio = monthly debt payments / gross monthly income x 100

The result is shown as a percentage.

Example calculation

If:

• Gross monthly income = 6,000
• Monthly debt payments = 1,800
• Calculation = 1,800 / 6,000
• Percentage factor = 100

Then:

DTI ratio = 1,800 / 6,000 x 100 = 30%

The DTI ratio is 30.00%.

What is debt-to-income ratio?

Debt-to-income ratio is the percentage of gross monthly income used for monthly debt payments. Lenders often review it when assessing borrowing capacity.

A lower DTI generally means more room in the budget for new payments.

Interpreting your result

A high DTI can signal repayment stress or limited borrowing capacity. A low DTI may support affordability, but lenders also consider credit, assets, expenses, and loan type.

When to use this calculator

Use this calculator when you want to:

• check debt pressure
• prepare for borrowing
• review affordability
• track debt reduction

Common mistakes

Common mistakes include:

• using net income
• excluding recurring debts
• counting normal bills as debts
• assuming DTI guarantees approval

FAQs

Should I use gross or net income?

DTI is commonly calculated using gross monthly income.

What debts should I include?

Include recurring debt payments such as loans, cards, and mortgages.

Is lower DTI better?

Usually yes, because less income is committed to debt.

Is this financial advice?

No. It is a planning estimate only.