Include mortgage, loans and credit cards. Below 35% is considered healthy; above 43%, lenders see it as risky. Not financial advice.
This debt-to-income ratio (DTI) calculator works out what share of your monthly income goes toward debt payments, with a healthy / caution / high-risk indicator.
Why your DTI ratio matters
Your DTI ratio is one of the first things lenders check before approving a mortgage or loan: it shows how much of your income is already committed to debt. Keeping it below 35% leaves you more breathing room and improves your chances of getting approved on good terms. This is a guideline only — it’s not financial advice.
FAQ
What is the DTI ratio?
The debt-to-income ratio is your total monthly debt payments (mortgage, loans, credit cards) divided by your monthly net income, expressed as a percentage.
What DTI is considered healthy?
Below 35% is generally seen as healthy. Between 35% and 43% calls for caution, and above 43% lenders typically see it as high risk.
Why does DTI matter for a mortgage or loan application?
Lenders use it to estimate how much more debt you can safely take on. A lower DTI usually means better approval odds and terms.
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