Debt-to-Income Calculator
Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments, one of the key numbers lenders use to evaluate loan applications. Toolverge divides your total monthly debt payments by your gross monthly income and labels the result against common mortgage-underwriting bands, from excellent (under 36%) to poor (50% and above).
Educational estimate only. Results are not medical, legal, or financial advice. Confirm important decisions with a qualified professional.
How it works
- Enter your total monthly debt payments (loans, credit cards, etc.).
- Enter your gross monthly income.
- Read your DTI percent and its qualitative band.
Formula DTI% = totalMonthlyDebt / grossMonthlyIncome × 100
Frequently asked questions
What counts as monthly debt for DTI?
Typically minimum payments on loans, credit cards, car payments, and housing costs — not everyday expenses like groceries or utilities.
What is a good DTI ratio?
Under 36% is generally considered excellent by mortgage lenders; 36–43% is workable for many loan programs; above 43–50% gets progressively harder to qualify with.
Is DTI based on gross or net income?
Gross (pre-tax) income is the standard input lenders use for DTI calculations.
How can I lower my DTI?
Pay down existing debt, avoid taking on new monthly obligations, or increase your income — any of these lowers the ratio.
Does a low DTI guarantee loan approval?
No, DTI is one factor among credit score, employment history, and other underwriting criteria lenders consider.