Question 1

How It Works

Accepted Answer

Enter your gross monthly income and all monthly debt payments including mortgage/rent, car loans, student loans, credit card minimums, and other obligations. The calculator computes your front-end DTI (housing only) and back-end DTI (all debts), then shows where you fall on the qualification scale used by most lenders.

Question 2

What is a good debt-to-income ratio?

Accepted Answer

Most lenders prefer a DTI below 36%, with no more than 28% going toward housing. A DTI between 36-43% may still qualify for some loans but with less favorable terms. Above 43% is considered high risk by most conventional lenders, though FHA loans may accept up to 50% in some cases.

Question 3

Does my DTI ratio affect my credit score?

Accepted Answer

Your DTI ratio is not directly factored into your credit score — credit bureaus don't know your income. However, a high DTI often correlates with high credit utilization (which does impact your score) and increases the risk of missed payments, which would hurt your score.

Question 4

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

Accepted Answer

You can lower your DTI by paying down existing debts, increasing your income, or both. Focus on eliminating high-payment debts first. Avoid taking on new debt before applying for a loan. Even a few months of aggressive debt paydown can make a meaningful difference in your ratio.

Debt-to-Income Ratio Calculator

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