Debt-to-Income Ratio Calculator
See exactly what lenders see when you apply for a mortgage or auto loan. Lower is better. Free, private, no sign-up.
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Why this matters
With $6,000/month income and $2,400 in debt payments: your DTI is 40%. That puts you in the "risky" zone for conventional loans. Under 36% is the target. Under 43% is generally the hard limit. Lenders use this single number to approve or deny you.
Frequently Asked Questions
Is DTI the same as a credit score?
No. DTI and credit score are separate metrics. Lenders use both — you can have excellent credit yet be denied because of a high DTI.
How do I lower my DTI?
Reduce debt payments (especially credit cards), refinance to lower monthly obligations, or increase your income. Cutting expenses alone doesn’t change DTI — you need to reduce debt or earn more.
What is a good DTI ratio for a mortgage?
Most conventional lenders prefer a DTI under 36%. Some programs allow up to 43%, but higher ratios can mean higher rates or denials.
Does a personal loan affect DTI?
Yes. Any monthly debt payment counts toward your DTI, including personal loans, auto loans, minimum credit card payments, and student loans.
How fast can I improve my DTI?
Paying down a credit card from $500 to $0 can drop your DTI by 3–8 percentage points in a single month. Refinancing a car loan can take 4–6 weeks but has the same effect.