Debt-to-Income Calculator
Calculate your debt-to-income ratio (DTI) to assess your financial health. Get personalized insights and recommendations for mortgage applications and debt management.
Step 1: Monthly Income
About Gross Income
Gross income is your total income before taxes and deductions. Include wages, salary, bonuses, commissions, and any other regular income sources.
Step 2: Monthly Debt Payments
About DTI Ratio
Your debt-to-income ratio (DTI) is calculated by dividing your total monthly debt payments by your gross monthly income. Lenders use this to assess your ability to manage payments.
Debt-to-Income Calculation Results
Your Debt-to-Income Ratio
Monthly Debt Breakdown
| Debt Type | Monthly Payment | Percentage of Total Debt |
|---|---|---|
| Mortgage/Rent | $1,200 | 63% |
| Car Loan | $350 | 18% |
| Credit Cards | $200 | 11% |
| Other Debt | $150 | 8% |
Personalized Recommendations
DTI Ratio Analysis
Your debt-to-income ratio of 38% falls in the moderate range. Most lenders prefer a DTI below 36% for conventional loans, but some may approve up to 43%.
Action Steps to Improve Your DTI
| Recommendation | Potential Impact |
|---|---|
| Pay down credit card balances | Reduce monthly payments by $50-100 |
| Consider debt consolidation | Lower interest rates, single payment |
| Increase income with side job | Boost income without reducing debt |
| Delay large purchases | Avoid adding new debt obligations |
Mortgage Application Tips
For mortgage applications, aim for a front-end DTI (housing costs only) below 28% and a back-end DTI (all debt) below 36%. Consider FHA loans which allow up to 43% DTI with good credit.
Need Professional Financial Advice?
Connect with certified financial advisors for personalized debt management strategies, mortgage planning, and financial health assessments.
Consult a Financial Advisor