Loan Payment Percentage Calculator

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.

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.

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.

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.