How do I calculate my debt-to-income ratio?

Divide total monthly debt payments by gross monthly income, multiply by 100. Example: $1,200 debt payments with $5,000 income: (1200 / 5000) × 100 = 24% DTI ratio.

What is a good debt-to-income ratio?

Lenders prefer: Under 36% is ideal, 36-43% is acceptable for mortgages, above 43% makes approval difficult. 28% or less for housing costs alone is considered healthy. Lower is always better for financial flexibility.

What counts as debt in DTI calculation?

Include: mortgage/rent, car loans, student loans, credit card minimum payments, personal loans. Exclude: utilities, groceries, insurance (unless it's financed), subscriptions. Use minimum payments, not full balances.

How can I improve my debt-to-income ratio?

Increase income (raises, side work), pay off debts (reduces payments), avoid new debt, refinance to lower monthly payments. Paying off smallest debts first shows quick improvement in DTI.

Loan Payment Percentage Calculator

Calculate what percentage of income goes to loan payments. Determine debt-to-income ratio for financial planning.

Calculate

Monthly Income ($)

Loan Payment ($)

Formula

Debt-to-Income Ratio = (Total Monthly Debt Payments / Gross Monthly Income) × 100

Example

monthly Income:5000

loan Payment:1200

debt To Income:24

Frequently Asked Questions

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