What is a good debt-to-income ratio?

Lenders generally view 36% or below as healthy, 37–43% as manageable, and above 43% as high risk. Many mortgage programs cap DTI around 43%.

How is DTI calculated?

DTI = total monthly debt payments ÷ gross monthly income × 100. It is expressed as a percentage of your pre-tax income.

Should I use gross or net income for DTI?

Use gross (pre-tax) monthly income. Lenders calculate DTI against gross income, so using your take-home pay would make your ratio look higher than the figure a lender works with.

Which payments count as debt?

Include recurring debt obligations: mortgage or rent, car loans, student loans, personal loans and minimum credit-card payments. Everyday living costs like groceries, utilities and subscriptions are normally excluded.

Does a high DTI mean I will be refused a loan?

Not automatically, but a DTI above 43% narrows your options and may need compensating factors like a larger deposit, strong credit score or extra savings. Lowering existing debt or raising income improves the ratio.

How can I lower my debt-to-income ratio?

Either reduce monthly debt — pay down balances or refinance to lower payments — or increase gross income. Both move the ratio toward the healthy band; even small changes can shift you across a lender threshold.

Is my data uploaded anywhere?

No — every calculation runs locally in your browser and nothing is sent to a server.

Debt-to-Income Ratio Calculator

Debt-to-income ratio calculator

Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes toward debt payments. Lenders use it to judge how much new borrowing you can comfortably handle, so it is a key number when applying for a mortgage, car loan or personal loan.

How it works

The calculation is a simple ratio expressed as a percentage:

DTI = (total monthly debt payments ÷ gross monthly income) × 100

Use gross (pre-tax) income, and add up all recurring debt obligations — mortgage or rent, loans and minimum card payments. The tool then sorts the result into a lender band:

DTI	Band
≤ 36%	Healthy
37–43%	Manageable
> 43%	High

Example

Monthly debt payments of £1,500 against gross monthly income of £5,000:

DTI = (1,500 ÷ 5,000) × 100 = 30% → Healthy

Lowering the debt to £1,200 would drop the ratio to 24%, while letting it climb to £2,200 would push it to 44%, into the high-risk band.

All calculations run privately in your browser — nothing is sent to a server.