Calculator

Debt-to-Income Ratio Calculator

Enter your income and monthly debt payments to instantly see your DTI ratio — and what lenders think of it.

Income
$
Monthly debt payments
Mortgage / Rent
$
Car payment
$
Student loans
$
Credit card minimums
$
Personal loans
$
Other
$
Your DTI ratio

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0%20%35%43%50%100%

Enter your income and debt payments to calculate your DTI ratio.

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Toya AI builds a personalized debt payoff plan from your real account data — so your DTI improves, not just on paper.

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What is a debt-to-income ratio?

Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward paying debts. Lenders use it to evaluate whether you can comfortably take on new credit — like a mortgage, auto loan, or personal loan.

The formula is simple:

DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

For example, if you earn $6,000 per month before taxes and pay $2,000 in total debt obligations, your DTI is 33%.

DTI ratio ranges explained

0–20%

Excellent

You have very little debt relative to income. Lenders will offer the most favorable rates and terms. You have significant financial flexibility.

21–35%

Healthy

Most lenders consider this range manageable. You'll qualify for most loans and mortgages, often at competitive rates.

36–43%

Caution

You may still qualify for mortgages and loans, but lenders will scrutinize your application more closely. The CFPB recommends staying below 36%.

44–50%

High risk

Most traditional lenders cap DTI around 43–50% for mortgage approvals. You may face denials or much higher interest rates.

50%+

Critical

Qualifying for new credit is very difficult. Lenders see this as a serious red flag. Immediate debt reduction should be a priority.

What counts toward your DTI?

Lenders typically include all recurring monthly debt obligations. The most common items are:

  • Mortgage or rent payments
  • Car loan payments
  • Student loan payments (even if deferred, some lenders count them)
  • Minimum credit card payments
  • Personal loan payments
  • Child support or alimony
  • Any other recurring installment debt

Note: Utilities, groceries, insurance premiums, and subscriptions are not counted in your DTI — even though they affect your budget.

How to improve your DTI ratio

Since DTI = debts ÷ income, you can improve it in two ways: reduce your monthly debt payments, or increase your income.

Pay down existing balances

Reducing credit card balances lowers your minimum payment, cutting your DTI immediately.

Avoid taking on new debt

Every new loan or card application that results in a balance increases your DTI. Pause new borrowing while improving your ratio.

Refinance or consolidate

Consolidating multiple debts into one lower-rate loan can reduce your total monthly obligation.

Increase gross income

A raise, side hustle, or freelance work grows your denominator, improving your ratio without paying off a single dollar.

Front-end vs. back-end DTI

Mortgage lenders often look at two separate DTI numbers:

Front-end DTI (housing ratio)

Only your housing costs (mortgage principal, interest, taxes, insurance) divided by gross income. Most conventional lenders prefer this below 28%.

Back-end DTI (total debt ratio)

All monthly debt payments divided by gross income — the number this calculator produces. Most lenders prefer this below 43%, though some programs allow up to 50% with compensating factors.

Ready to lower your DTI?

Toya AI connects to your real accounts and builds a personalized debt payoff plan that systematically lowers your DTI ratio — and your stress.

Get a plan to lower your DTI

Free to start. No credit card required.