Debt-to-Income Ratio Calculator

Making sure your debt load is balanced to your income level.

Debt-to-income ratioCalculating your personal debt-to-income ratio is fast and easy with the right tools. Consolidated Credit is here to help with a free debt-to-income ratio calculator. Simply use your budget to fill in the numbers below and click “CALCULATE” to determine your personal DTI. If you’re not sure how to use DTI or what it means, there’s more information below the calculator. We recommend returning to this page to periodically check your debt ratio, particularly if there has been a recent change in your income or financial situation.

Note: All values required below are monthly. If you receive income and/or make payments on a different schedule, determine how much you pay on a monthly basis to enter the values below.

What is a debt-to-income ratio?

Debt-to-income ratio is what lenders use to determine if you are eligible for a loan. If you have too much debt relative to your income, you won’t get approved for a new loan. For most lenders, the cutoff is around 41%. If you spend more than 41% of your income on debt payments each month, that makes you a high-risk candidate for a loan. The concern is that you won’t be able to afford all your debt payments and may default. Thus, you get rejected for the loan.

So, this means it’s a good idea to check your debt-to-income ratio before you apply for a loan to make sure you can get approved.  But in addition, you can also use DTI to measure your overall financial stability. When you have too much debt, you start engaging in risky financial habits. You start to juggle bills, put off expenses, and pay for necessities with credit cards. Keeping an eye on your DTI  can be a good way to recognize early that your budget may be getting overextended. That’s why we recommend coming back to this debt-to-income ratio calculator periodically to check your debt ratio. It will help you stay on the right track and avoid potential debt problems.