Add your gross monthly income and the minimum payments you make on each debt. The calculator shows your debt-to-income ratio and where it sits against the limits most lenders use.
Count the minimum payments you are required to make: mortgage or rent, car loans, student loans, personal loans and the minimum on each credit card. Everyday bills such as food, utilities and phone are not debts and are left out.
Below about 36% most lenders are comfortable. Between 36% and 43% you can usually still borrow, but on stricter terms. Above 43% many mortgage lenders will decline or ask for strong compensating factors, such as large savings or a high credit score.
Common questions
What is a good debt-to-income ratio?
Under 36% is generally considered good, and under 20% excellent. For a mortgage, many lenders want the housing payment alone under 28% of income.
How can I lower my DTI quickly?
Pay off small balances completely, since that removes a whole payment; avoid new credit before applying; and include all regular income, such as a second job, if you can document it.