Financial Tool

Debt Ratios Calculator

Assess your financial health by calculating your Debt-to-Income (DTI) and Housing ratios.

Total DTI Ratio
36%
Excellent
Housing Ratio
24%
Note: Lenders typically prefer the "28/36 Rule" - no more than 28% for housing and 36% for total debt.

Σ The Formula

DTI = (Total Monthly Debt / Gross Monthly Income) × 100

Real World Examples

Mortgage Qualification
Lenders typically look for a DTI under 43% for a qualified mortgage.
Budgeting
A 28/36 rule is often recommended for sustainable housing costs.

# About This Calculator

The Debt-to-Income (DTI) Ratio is a key indicator of financial stability used by lenders to determine your ability to manage monthly payments and repay debts. It compares your total monthly debt payments to your gross monthly income (before taxes).

A lower DTI ratio demonstrates a good balance between debt and income. Conversely, a high DTI ratio can indicate that an individual has too much debt for the amount of income earned each month.

How To Use

  1. Enter your **Gross Monthly Income** (before taxes).
  2. Enter your monthly **Housing Costs** (Mortgage/Rent, Insurance, Taxes).
  3. Enter other monthly debt payments like **Car Loans**, **Credit Cards**, and **Student Loans**.
  4. The tool calculates your **Front-End (Housing)** and **Back-End (Total DTI)** ratios instantly.

Frequently Asked Questions

What is a good DTI ratio?+

Generally, 36% or less is considered excellent. Most lenders allow up to 43% for a mortgage, though some specialized loans may allow higher.

Does DTI include utilities or groceries?+

No. DTI only calculates fixed debt obligations like loans and minimum credit card payments. It does not include variable living expenses like food, gas, or utilities.

Is Debt Ratios Calculator free to use?+

Yes, Debt Ratios Calculator on Matheric is completely free to use. We believe in accessible education and utility for everyone.

How accurate is Debt Ratios Calculator?+

We use standard mathematical formulas and high-precision computing algorithms to ensure results for Debt Ratios Calculator are accurate for academic and professional use.

Can I use Debt Ratios Calculator on my phone?+

Yes! Debt Ratios Calculator is fully responsive and optimized for all devices, including smartphones, tablets, and desktops.

Do you save my data?+

No. We prioritize your privacy. All calculations are performed in your browser or temporarily processed, and we do not store your personal input data.

About

The Debt-to-Income (DTI) Ratio is a key indicator of financial stability used by lenders to determine your ability to manage monthly payments and repay debts. It compares your total monthly debt payments to your gross monthly income (before taxes).

A lower DTI ratio demonstrates a good balance between debt and income. Conversely, a high DTI ratio can indicate that an individual has too much debt for the amount of income earned each month.

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