FREE DEBT TO INCOME RATIO CALCULATOR

See How Much of Your Income Goes Toward Debt

DebtWave's free debt to income ratio calculator compares your monthly debt payments with your gross monthly income. In seconds, you can estimate your DTI and see how much of your income is already committed to debt.

Your debt-to-income ratio can help you understand your monthly financial obligations and may also be one factor lenders consider when reviewing an application for new credit.

Calculate My DTI Get Free Credit Counseling

Free calculator • No credit check • No obligation to enroll

The DTI Formula

Monthly Debt Payments ÷ Gross Monthly Income × 100 = DTI %

For example, $2,000 in monthly debt payments divided by $6,000 in gross monthly income equals an estimated debt-to-income ratio of 33.3%.

501(c)(3) Nonprofit Organization
Since 2001 Helping Consumers
NFCC Member Agency
No New Loan Credit Counseling Options

UNDERSTAND YOUR MONTHLY DEBT LOAD

How to Use a Debt to Income Ratio Calculator

Using a debt to income ratio calculator requires two basic numbers: your required monthly debt payments and your gross monthly income. Gross income means income before taxes, insurance and other deductions.

Couple reviewing monthly debts with a debt to income ratio calculator
Comparing monthly debt payments with gross income can help you understand how much pressure debt places on your budget.
1

Add Monthly Debt Payments

Enter required monthly payments for housing, credit cards, auto loans, student loans, personal loans and other recurring debts.

2

Add Your Gross Income

Enter monthly income before taxes and deductions, including wages and other recurring income sources that apply to you.

3

Calculate Your DTI

The calculator divides your monthly debt payments by gross monthly income and converts the result to a percentage.

Free Debt to Income Ratio Calculator

Enter your normal monthly payments and gross monthly income. Leave any field that does not apply to you blank.

Monthly Debt Payments

Enter required monthly payments, not total balances.

Enter your normal monthly housing payment. Renters may leave this blank for a debt-only DTI.
$
Add the required minimum monthly payments shown on all credit card statements.
$
Include required monthly payments for auto, motorcycle, boat or RV loans.
$
Enter required monthly payments for federal and private student loan accounts.
$
Include required payments for personal, consolidation and other installment loans.
$
Include other recurring debt or fixed obligations not already entered above.
$
Total Monthly Payments $0

Gross Monthly Income

Enter recurring income before taxes and deductions.

Enter your average monthly pay before taxes, insurance or payroll deductions.
$
Enter typical monthly personal income from self-employment before personal taxes.
$
Enter a reasonable monthly average if this income is recurring and normally received.
$
Include recurring monthly pension, retirement or similar income you receive.
$
Include recurring benefit income that you choose to count in your monthly total.
$
Include other recurring gross income not already entered in the categories above.
$
Total Gross Monthly Income $0

Your numbers are calculated in your browser and are not submitted to DebtWave.

Important: Debt-to-income calculations can vary by lender and loan type. This calculator is intended for educational purposes. If you rent, some DTI methods exclude rent; leave the rent field blank if you want to calculate your debt payments without housing.

Your Estimated Debt-to-Income Ratio

0%

Monthly Payments $0
Gross Monthly Income $0
Income Going to Listed Payments 0%

Are Credit Card Payments Driving Up Your DTI?

If high-interest credit card payments represent a large part of your monthly obligations, DebtWave can help you review your balances, interest rates, payments and household budget.

Start My Free Financial Review Estimate a DMP Payment

KNOW WHICH NUMBERS TO USE

What Counts in Your Debt-to-Income Ratio?

A debt to income ratio calculator is most useful when you enter required monthly debt payments rather than outstanding balances. Likewise, income should generally reflect gross monthly income before taxes and other deductions.

Monthly Debt Payments

Focus on recurring payments you are obligated to make each month. For example, a $10,000 credit card balance is not entered as $10,000. Instead, enter the required monthly payment.

  • Mortgage or housing payment
  • Credit card minimum payments
  • Vehicle loan payments
  • Student loan payments
  • Personal loan payments
  • Other recurring debt obligations

Gross Monthly Income

Gross income generally means money earned before taxes and other deductions. However, lenders may have their own rules regarding which income sources they accept and how income must be documented.

  • Salary and wages
  • Recurring commissions or bonuses
  • Qualifying self-employment income
  • Pension or retirement income
  • Recurring benefit income
  • Other recurring gross income

UNDERSTANDING YOUR RESULT

What Is a Good Debt-to-Income Ratio?

There is no single DTI percentage that guarantees approval for credit. In fact, lenders and loan programs use different standards. Therefore, your debt to income ratio calculator result should be viewed as one measure of your financial picture rather than a pass-or-fail score.

Lower DTI

Less Income Committed to Debt

A lower ratio generally means a smaller portion of your gross monthly income is already committed to the debt payments you entered.

36%

A Common Planning Reference

CFPB educational materials have used 36% or less as a planning guideline for homeowners' total debts. However, this is not a universal lending limit.

Higher DTI

More Income Committed to Payments

As DTI rises, more gross income is already committed to monthly debt. Consequently, there may be less room in the budget for other expenses and financial goals.

The Consumer Financial Protection Bureau notes that different lenders and loan products use different DTI limits. Learn more from the Consumer Financial Protection Bureau .

IMPROVE YOUR MONTHLY FINANCIAL PICTURE

How Can You Lower Your Debt-to-Income Ratio?

Because DTI compares monthly debt payments with gross income, reducing required debt payments can improve the ratio over time. However, the best strategy depends on your balances, interest rates, budget and financial goals.

1

Reduce Existing Debt

Paying down balances can eventually reduce or eliminate required monthly payments. As a result, less income may be committed to debt.

2

Avoid Adding New Payments

Taking on another loan can add a new monthly obligation. Therefore, consider how a new payment could affect your overall DTI before borrowing.

3

Review Your Repayment Strategy

If high-interest credit card payments make progress difficult, review your budget and compare available repayment options before deciding what to do next.

WHEN MONTHLY DEBT FEELS TOO HIGH

Your DTI Is One Number. Your Budget Tells the Full Story.

A debt to income ratio calculator compares debt payments with gross income, but it does not account for every household expense. Food, utilities, insurance, childcare and other costs can also affect how manageable your payments feel.

Therefore, a complete financial review can be more useful when credit card payments are creating pressure even if your DTI does not appear unusually high.

DebtWave provides nonprofit credit counseling to help consumers review debts, income, expenses, interest rates and repayment options together.

High Credit Card Payments?

A DebtWave counselor can review your credit card balances, APRs, minimum payments and household budget. Most importantly, speaking with a counselor does not require you to enroll in a Debt Management Program.

If a DMP is appropriate, participating creditors may offer reduced interest rates, payments or other concessions under their current guidelines.

Get Started Online Estimate My DMP Payment

FREE DEBTWAVE FINANCIAL TOOLS

Look Beyond Your Debt-to-Income Ratio

After using the debt to income ratio calculator, these free DebtWave tools can help you evaluate your overall financial position and credit card repayment strategy.

Net Worth Calculator

Compare your assets and liabilities to see what you own, what you owe and your estimated personal net worth.

Calculate My Net Worth →

Credit Card Payoff Calculator

Estimate how long your current credit card balance may take to repay based on your APR and monthly payment.

Find My Payoff Date →

Debt Management Plan Calculator

Compare current credit card terms with estimated payment and interest-rate terms that may be available through a DMP.

Estimate My DMP Payment →

DEBT TO INCOME RATIO CALCULATOR QUESTIONS

Frequently Asked Questions About DTI

These answers explain how a debt to income ratio calculator works and how to interpret the numbers you enter.

What is a debt-to-income ratio?
Your debt-to-income ratio, commonly called DTI, compares your monthly debt payments with your gross monthly income. The result is expressed as a percentage.
How do I calculate my debt-to-income ratio?
Add your required monthly debt payments and divide that amount by your gross monthly income. Then, multiply the result by 100. DebtWave's debt to income ratio calculator performs the calculation automatically.
What does gross monthly income mean?
Gross monthly income generally means income before taxes, insurance premiums and other deductions. Depending on the situation, qualifying income may include wages and other recurring sources. Lenders may use their own documentation requirements.
Do I enter my credit card balance or minimum payment?
Enter the required monthly payment, not the total balance. For example, if a card has a $7,000 balance and a $210 required minimum payment, enter $210 in the calculator.
Should rent be included in my debt-to-income ratio?
Calculation methods can vary. CFPB educational materials have treated rent differently from mortgage debt when providing DTI guidance for renters. This calculator allows you to include rent if you want to understand the share of income going toward housing and debt together. Alternatively, renters can leave the housing field blank for a debt-only calculation.
What is considered a good debt-to-income ratio?
There is no universal DTI percentage that guarantees approval for a loan. The CFPB notes that different lenders and loan products use different limits. Therefore, use DTI as one financial indicator rather than a guarantee of lending eligibility.
Does using this DTI calculator affect my credit?
No. DebtWave's calculator does not require a credit check. You manually enter your estimated monthly debt payments and income, and the calculation takes place in your browser.
Can paying off credit card debt lower my DTI?
It can. Once a debt is repaid and its required monthly payment is eliminated, your total monthly debt obligations may decrease. If your gross income remains the same, that can lower your debt-to-income ratio.
Is DTI the same as a credit score?
No. DTI compares monthly debt payments with gross income. A credit score is calculated from information in your credit history. They measure different aspects of your financial situation.

TAKE THE NEXT STEP

Are Monthly Credit Card Payments Taking Up Too Much of Your Income?

Your debt to income ratio calculator result provides one view of your financial situation. If credit card payments are making it difficult to cover expenses or make progress on balances, DebtWave can help you review the bigger picture.

Get Started Online Call (888) 686-4040

Free initial consultation • No new loan • No obligation to enroll