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Debt-to-income ratio calculator

Calculate the number lenders use to determine your ability to repay.

Your debt-to-income (DTI) ratio is the percentage of personal debt payments you make each month in relation to your monthly income. A good debt-to-income ratio is determined by how low your number is. Lenders use this to determine your ability to repay a loan or mortgage.

DTI ratio calculator

Calculate what percentage of your income is allotted to debt.

Your monthly debt payments
Credit card paymentsCar loan payments
$/ mo
$/ mo
Mortgage paymentsOther loan payments
$/ mo
$/ mo
Your monthly income

Fill out the form and click “Calculate” to see your DTI ratio.

Your debt-to-income ratio is %

How to use the DTI ratio calculator

Follow the instructions below to calculate your DTI ratio:

  1. Enter the total amount you pay toward your credit cards, car loans and mortgages each month.
  2. Add up your remaining monthly debt payments, such as student loans, and enter the number under Other loan payments.
  3. Enter your monthly income.
  4. Click Calculate. To the right of the calculator, you’ll see your DTI ratio and a brief description of what that means to your creditors and lenders.

How to calculate your debt-to-income ratio

The DTI ratio formula doesn’t require fancy math — it’s simply your debt divided by your income.

Here’s how to calculate your debt-to-income ratio by hand:

  1. Add up all of your monthly payments on existing debts.
  2. Add up your monthly income before taxes and deductions.
  3. Divide your total monthly debt repayments by your total monthly income.
  4. Multiply that number by 100 to get your DTI ratio.

Let’s take a look at two examples:

Anita’s a recent college graduate who wants to apply for a credit card to improve her credit score. She makes $48,000 a year before taxes. Her only debt is student loan repayments. Figuring out her DTI is pretty simple:

Total monthly debt$400 student loan repayment
Total monthly income$4,000 salary
Debt-to-income ratio400/4000 = 0.1 or 10%

Frank wants to apply for a personal loan to help cover the cost of his son’s wedding. He makes $75,000 a year and receives monthly Social Security benefits. He also has a mortgage, car loan and two credit cards that he makes payments on each month. Here’s how Frank calculates his DTI:

Total monthly debt$599 mortgage repayment +
$479 car loan repayment +
$20 minimum credit card payment +
$75 minimum credit card payment =
Total monthly income$6,250 salary +
$500 Social Security =
Debt-to-income ratio1173/6750 = 0.1738 or 17.38%

While your debt-to-income ratio doesn’t directly affect your credit score, it plays a major role in your overall financial health. Both your DTI ratio and credit score help lenders determine your ability to pay back a loan or credit card. It’s not uncommon to get denied for a credit card or loan — despite having good credit — because your debt-to-income ratio is too high.

Bottom line

Finder’s DTI calculator can help you decide next steps when it comes to applying for a mortgage or debt consolidation loan. And if your debt-to-income ratio is too high, it can also help you determine whether you should pursue other debt relief options first.

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