Calculate your debt-to-income ratio and determine the maximum loan amount you can afford
Maximum debt-to-income ratio (typically 36-43%)
25.0%
Good
$5,000,000.00
$20,000,000.00
$3,000,000.00
$3,000,000.00
$179,543,286.88
Our debt-to-income (DTI) ratio calculator helps you understand your current debt burden and determine the maximum loan amount you can afford. Lenders use DTI to evaluate loan applications, so knowing yours is crucial.
Debt-to-income (DTI) ratio is a key metric lenders use to assess your ability to manage monthly debt payments. It compares your total monthly debt payments to your gross monthly income.
DTI is expressed as a percentage. Lower DTI ratios indicate better financial health and make you a more attractive borrower. Most lenders prefer DTI below 36-43%.
This calculator helps you understand your current DTI, see how a new loan would affect it, and determine the maximum loan amount you can qualify for based on your income and existing debts.
Enter your gross (before taxes) monthly income from all sources.
Tip: Include salary, bonuses, rental income, and other regular income sources.
Enter total of all existing monthly debt payments (credit cards, car loans, student loans, etc.).
Tip: Include minimum payments on all debts, not just what you're currently paying.
Enter your target DTI (typically 36-43% for most loans). Lenders have different requirements.
Tip: Lower DTI (under 36%) is ideal and may qualify you for better rates.
For max loan calculation, enter the expected interest rate for the new loan.
Enter the loan term in years for the maximum loan calculation.
Result: You'll see your current DTI ratio, available monthly payment capacity, and maximum loan amount you can afford while staying within your target DTI.
DTI is calculated as total monthly debt payments divided by gross monthly income. Maximum loan is calculated based on available monthly payment capacity.
DTI = (Total Monthly Debt Payments / Gross Monthly Income) × 100Monthly income $5,000, existing debts $1,500/month. Target DTI 40% for a new loan.
Interpretation: Your current DTI is 30% ($1,500/$5,000). With 40% target, you have $500/month available for new debt ($2,000 total - $1,500 existing). At 6% for 30 years, this allows a $83,000 loan.
Lenders may use different DTI calculation methods
Does not account for other financial obligations
Actual qualification depends on credit score and other factors
Generally, DTI under 36% is excellent, 36-43% is acceptable for most loans, and above 43% may limit loan options. Lower is always better for rates and approval.
Increase income, pay down existing debts, or avoid taking on new debt. Paying off credit cards or car loans improves DTI quickly.
No, requirements vary. Mortgages typically allow up to 43% DTI, while personal loans may be stricter. Government-backed loans may have different limits.
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