💰 Debt to Income Ratio Calculator
Calculate your DTI ratio to see if you qualify for a mortgage or other loans. Lenders use this to assess your ability to manage debt.
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Frequently Asked Questions
What is debt-to-income ratio?
Debt-to-income (DTI) ratio is your total monthly debt payments divided by your gross monthly income, expressed as a percentage. Lenders use this to determine if you can afford to take on more debt.
What is a good DTI ratio?
Generally, a DTI below 36% is considered good. Most lenders prefer DTI under 43% for mortgages. Below 20% is excellent and gives you the most borrowing power and best rates.
What's the difference between front-end and back-end DTI?
Front-end DTI is just your housing costs (mortgage, insurance, taxes) divided by income. Back-end DTI includes all debts (housing + car + credit cards + loans). Lenders look at both.
How can I lower my DTI ratio?
You can lower DTI by: 1) Paying off debts, 2) Increasing your income, 3) Avoid taking on new debt, 4) Making extra payments on existing debt, or 5) Refinancing to lower payments.
Does my DTI affect my credit score?
DTI does NOT directly affect your credit score - credit bureaus don't know your income. However, lenders check it when you apply for loans. A high DTI can lead to loan denials even with good credit.