Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio to understand your financial health and loan qualification potential.
Understanding Your Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is a key financial metric that lenders use to evaluate your borrowing capacity. It represents the percentage of your monthly income that goes toward paying debts.
DTI Ratio Guidelines:
- Below 28%: Excellent - You're in a strong position to take on additional debt if needed
- 28-36%: Good - Most lenders consider this acceptable
- 36-43%: Concerning - You may have difficulty qualifying for new loans
- Above 43%: Poor - Consider debt reduction strategies before taking on new debt