Debt-to-Income (DTI) Ratio Calculator – Measure Your Financial Health

What is a Debt-to-Income (DTI) Ratio?

The Debt-to-Income (DTI) Ratio is a key financial metric that lenders use to assess your ability to manage monthly payments and repay debts. It compares your total monthly debt payments to your gross monthly income (before taxes).

A lower DTI ratio indicates better financial health, making it easier to qualify for loans, mortgages, and credit cards.

Why Does DTI Matter?

• Loan Approvals: Most lenders prefer a DTI ratio below 36%, with 43% often being the maximum for mortgage approvals.
• Financial Stability: A high DTI (above 50%) suggests financial stress, making it harder to save or handle emergencies.
• Budgeting Insight: Helps you understand how much of your income goes toward debt versus other expenses.

How to Use This Calculator

1. Enter Your Income – Includes salary, investments, pensions, and other earnings.
2. Input Monthly Debts – Mortgage, rent, loans, credit cards, and other liabilities.
3. Click "Calculate" – Instantly see your DTI ratio, along with breakdowns of front-end and back-end ratios.

Understanding Your Results

• Front-End DTI: Focuses on housing costs (mortgage/rent, property tax, insurance).
• Back-End DTI: Includes all debt payments (loans, credit cards, etc.).
• Safe Range (Below 36%): Ideal for loan approvals.
• Risky (Above 43%): May limit borrowing options.

Take Control of Your Finances

Use this calculator to:
✅ Evaluate loan eligibility before applying.
✅ Adjust spending to improve your ratio.
✅ Plan for major purchases like a home or car.

Stay financially healthy—calculate your DTI today! 🚀