DTI Calculator: Calculate Your Debt-to-Income Ratio for Smart Borrowing

Last updated: April 3, 2025

Understanding your DTI is crucial when assessing how much you can borrow. Your Debt-to-Income (DTI) ratio compares your total monthly debts to your gross income, offering a clear picture of your financial health. For example, if your monthly mortgage payment is $2,000 and your household income is $6,600 before taxes, your DTI would be 30%.

Improving your DTI ratio can enhance your borrowing potential, whether you're applying for a mortgage, personal loan, or other credit. By calculating your DTI, you gain insight into managing your debts and making informed financial decisions. A lower DTI not only increases your chances of loan approval but also secures better loan terms from lenders.

What is Debt-to-Income Ratio (DTI)?

Your Debt-to-Income (DTI) ratio compares your total monthly debt payments to your gross income. It helps you understand your financial health and influences your borrowing capacity.