Find out your debt-to-income ratio in seconds. See if you qualify for a mortgage, understand what lenders see, and get a clear path to improvement.
Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments. It's one of the most important numbers lenders look at when you apply for a mortgage, car loan, or personal loan. A lower DTI means more of your income is free — making you a lower risk to lenders.
DTI = Total Monthly Debt Payments ÷ Gross Monthly Income × 100. For example, if you earn $6,000/month and pay $1,800 in total debt payments, your DTI is 30%.
Most conventional loans require a DTI of 43% or lower. FHA loans can go up to 50% with strong compensating factors like a high credit score or large down payment. The best mortgage rates typically go to borrowers with a DTI under 36%.
Monthly minimum payments on credit cards, auto loans, student loans, personal loans, child support, and your proposed mortgage (for home loan applications). It does not include utilities, groceries, insurance, or other living expenses.
Two ways: reduce your monthly debt payments or increase your gross income. The fastest path is usually paying off a smaller debt entirely to eliminate that monthly payment, or refinancing a high-payment loan to a lower rate. Avoid taking on any new debt while trying to lower your DTI for a mortgage application.
Yes. Lenders use DTI alongside your credit score to set your rate. A DTI under 36% combined with a 740+ credit score typically qualifies you for the best available rates. A high DTI — even with a good credit score — signals financial strain and can result in a higher rate or outright denial.
Gross income — before taxes and deductions. This matters because your take-home pay is typically 25–35% less than your gross. A 43% DTI based on gross income can consume 55–65% of your actual paycheck, which is why lenders care so much about keeping it low.