Debt-to-Income Ratio Calculator

Calculate your debt-to-income ratio (DTI) to understand your borrowing capacity. Free online DTI calculator with risk assessment.

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Include credit cards, car loans, student loans, and existing mortgages.

Your total monthly income before taxes and deductions.

30.0%
Debt-to-Income Ratio
$1,500.00
Monthly Debt
$5,000.00
Monthly Income
Status
Good
0%20%36%43%50%+
ExcellentGoodFairPoor

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Understanding DTI Thresholds Used by Lenders

Your debt-to-income ratio is one of the most important metrics lenders use when deciding whether to approve your loan application. It measures the percentage of your gross monthly income that goes toward debt payments.

20% or Lower — Excellent

You have exceptional financial flexibility. Lenders view you as a very low-risk borrower, and you will likely qualify for the best interest rates and terms.

21% – 36% — Good

This is the sweet spot for most conventional loans. Your debt is well-managed, and you should qualify for competitive mortgage and auto loan rates.

37% – 43% — Fair

You are approaching the upper limit most lenders accept. You may still qualify for FHA and some conventional loans, but rates may be slightly higher.

Above 43% — Poor

Lenders consider this high risk. Approval becomes difficult unless you have strong compensating factors. Focus on paying down debt before applying for new credit.

Keep in mind that these thresholds can vary by lender and loan type. Some lenders use a "front-end" DTI that only includes housing costs, while others use a "back-end" DTI that includes all monthly debt obligations.

Frequently Asked Questions

Most lenders prefer a DTI of 36% or lower for conventional mortgages, with no more than 28% going toward housing costs. FHA loans may allow up to 43%, and some lenders accept up to 50% with compensating factors like a high credit score or large cash reserves.

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