Know your DTI before you apply

Debt to Income Ratio Calculator

Calculate your debt to income ratio in seconds. Enter your monthly debt payments and gross monthly income to see your DTI percentage and lender-ready rating.

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Include minimum payments for credit cards, student loans, auto loans, and personal loans.

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Use income before taxes and deductions. If paid biweekly, multiply by 2.

Your debt to income ratio

20.0%

DTI = (monthly debt / gross monthly income) x 100

Good

Comfortable range for many loan approvals.

DTI rating tiers

Excellent

Below 20%

Good

20% to 35%

High

35% to 50%

Dangerous

Above 50%

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The fastest way to improve your DTI is to reduce monthly debt payments. Track balances, set payoff targets, and stay on pace with the DebtClear app.

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What your DTI means for loan approval

Lenders use your debt to income ratio to measure how much of your paycheck is already committed to debt. A lower DTI tells lenders you have room for a new payment, which can improve approval odds and unlock better rates.

Many conventional loan programs prefer a DTI at or below 36%. FHA mortgages are more flexible and often allow up to 43%, but lower is always better. If your DTI is above those thresholds, focus on paying down debt or increasing income before applying.

Use this calculator regularly to track progress as your monthly payments shrink. Small wins add up fast when you automate extra payments and keep new debt out of your budget.

Frequently Asked Questions

What is a good debt to income ratio?

A DTI below 20% is excellent. Many lenders view 20% to 35% as good, 35% to 50% as high, and anything above 50% as risky.

Does DTI include rent or mortgage?

Yes. Your housing payment is part of monthly debt obligations, along with minimum payments for credit cards, auto loans, student loans, and personal loans.

What is the maximum DTI for FHA loans?

FHA loans often allow DTIs up to 43%, though lower ratios improve approval odds and pricing.

How can I lower my DTI quickly?

Pay down revolving balances, refinance high-interest loans, or increase income with a short-term side hustle. Even a $100 to $200 payment reduction can move your ratio.

Track Your Payoff in the Free App

Use the DebtClear app to log payments, track your real balance, and get monthly reminders. Watch balances fall so your debt-to-income ratio can improve over time.

DebtClear App

Track your payoff plan in the DebtClear app

Free to download — iOS & Android