Your debt-to-income
(DTI) ratio and credit history are two important financial health factors lenders consider
when determining if they will lend you money.
To calculate your estimated DTI ratio, simply enter your current income and payments. We’ll help
you understand what it means for you.
Please note this calculator is for educational purposes only and is not a denial or approval of
credit. The accuracy of the DTI calculation is based on the accuracy and completeness of the
information provided by you.
error
We are currently unable to save your information due to a system
error. Please try again later.
Your DTI ratio
Your DTI ratio should help you understand your comfort level with
your current debt situation and determine your ability to make
payments on any new money you may borrow. Remember, your DTI is
based on your income before taxes - not on the amount you actually
take home.
100%Take action
Debt: $2
Remaining Income: $0
0%
35%
49%
100%
Your DTI ratio is looking good
35% or less
Relative to your income before taxes, your debt is at a manageable
level. You most likely have money left over for saving or spending
after you 've paid your bills. Lenders generally view a
lower DTI as favorable.
It appears you are adequately managing your debt, but you may want
to consider lowering your DTI. This could put you in a better
position to handle unexpected expenses. If you’re looking to
borrow, keep in mind that lenders may ask for additional
eligibility factors.
With more than half your income before taxes going toward debt
payments, you may not have much money left to save, spend, or
handle unexpected expenses. With this DTI ratio, lenders may limit
your borrowing options.
Before taking on any new debt, estimate the monthly payment
for any new credit options and recalculate your DTI ratio so
you can see how the new payment may change your result.
If you are looking to borrow, find credit options that may
meet your specific needs.
Before applying for new credit, consider whether any of your
current credit accounts may meet your needs.
If you decide to apply, consider the 2 main factors lenders
look at when they evaluate your application:
Debt-to-income ratio.
Remember, the DTI ratio calculated here reflects your
situation before any new borrowing. Be sure to consider the
impact a new payment will have on your DTI ratio and budget.
Credit history and score.
The better your credit score, the better your borrowing
options may be. Your credit score is based on your consumer
credit report, so be sure it’s accurate before borrowing.
This calculator is for educational purposes only and is not a denial or approval of credit. When you apply for credit, your lender may calculate your debt-to-income (DTI) ratio based on verified income and debt amounts, and the result may differ from the one shown here. You do not need to share alimony, child support, or separate maintenance income unless you want it considered when calculating your result. If you receive income that is nontaxable, it may be upwardly adjusted to account for the nontaxable status.
QSR-05262026-7171990.1.25
LRC-0523
Debt-to-Income (DTI) ratio
Your DTI ratio compares how much you owe with how much you earn in a given month. It typically includes monthly debt payments such as rent, mortgage, credit cards, car payments, and other debt.
Other monthly debt payment
Include alimony, child support, or any other payment obligations that qualify as debt.
Total monthly debt payments
Monthly debt payments are any payments you make to pay back a creditor or lender for money you borrowed. Rent is also considered a monthly debt payment.
Annual income before taxes
Include any pre-tax and non-taxable income that you want considered in the results.
