Debt-to-Income Ratio Calculator
Your DTI ratio is one of the most important numbers lenders look at. Find out where you stand and what loans you may qualify for.
Monthly Income
Before taxes and deductions
Monthly Debts
Child support, personal loans, etc.
This calculator provides estimates for educational purposes only. Actual rates, payments, and savings will vary based on your credit score, loan-to-value ratio, property type, and lender. Consult a licensed mortgage professional for personalized advice. Wirly is not a lender or mortgage broker.
What Is DTI and Why Does It Matter?
Your debt-to-income ratio (DTI) measures how much of your monthly gross income goes toward debt payments. Lenders use it alongside your credit score to determine how much you can borrow and at what rate. A lower DTI means less risk to lenders, which typically translates to better rates and more loan options.
How to Improve Your DTI
- 1.Pay down credit cards. Reducing revolving debt has the fastest impact on your DTI since it directly lowers monthly minimums.
- 2.Avoid new debt. Hold off on financing a car or opening new credit lines before applying for a mortgage.
- 3.Increase income. A raise, side income, or a co-borrower can lower your DTI ratio without changing your debts.
- 4.Refinance existing loans. Extending a loan term lowers monthly payments (and DTI), though you may pay more interest over time.
DTI FAQ
What is a debt-to-income ratio?
Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward paying debts. Lenders use it to assess your ability to manage monthly payments and repay borrowed money.
What is a good DTI ratio for a mortgage?
Most conventional lenders prefer a DTI under 43%. A DTI under 36% is considered good, and under 28% is excellent. FHA loans allow up to 50% DTI, and VA loans have flexible DTI requirements.
How do I lower my DTI ratio?
You can lower your DTI by paying down existing debts, avoiding new debt, increasing your income, or refinancing to a lower payment. Paying off credit cards and car loans has the biggest immediate impact.
Does DTI include rent or just mortgage?
DTI includes your housing payment (mortgage or rent) plus all other monthly debt obligations: car payments, student loans, credit card minimums, child support, and any other recurring debt payments.
What debts are included in DTI calculation?
DTI includes mortgage/rent, car loans, student loans, credit card minimum payments, personal loans, child support, and alimony. It does not include utilities, insurance, groceries, or other living expenses.