Debt-to-Income Calculator — Know If You Qualify for Loans
Calculate your debt-to-income ratio to check loan eligibility. Banks use DTI to determine how much you can borrow for mortgages personal loans and credit cards.
Your debt-to-income ratio is the percentage of your gross monthly income that goes toward debt payments. Lenders use this ratio as a key factor in loan approval decisions. A DTI below 36% is considered good while above 43% makes it difficult to qualify for most mortgages. Understanding your DTI before applying for loans saves you from rejections that hurt your credit score.
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Key Information
| Parameter | Details |
|---|---|
| Ideal DTI Ratio | Under 36% |
| Maximum for US Mortgage | 43% (some exceptions to 50%) |
| India EMI-to-Income Rule | 40% - 50% maximum |
| Excellent DTI | Under 28% |
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Use Calculator NowFrequently Asked Questions
What is a good debt-to-income ratio?
A DTI under 36% is considered good by most lenders with housing costs ideally under 28% (front-end ratio). A DTI of 20% or below is excellent giving you the best loan terms and rates. Between 36-43% you can still get approved but may face higher rates. Above 43% most conventional mortgages will be denied though FHA loans may accept up to 50% in some cases.
How to calculate my DTI ratio?
Add all monthly debt payments: mortgage/rent + car loan + student loan + credit card minimums + any other loan EMIs. Divide by your gross (pre-tax) monthly income. Multiply by 100 for the percentage. Example: $1500 rent + $350 car + $250 student loan + $100 credit card = $2200 total. Gross income $6000. DTI = 2200/6000 = 36.7%.
How to lower my DTI ratio?
Pay off smallest debts first to eliminate monthly payments (snowball method). Increase income through side hustles overtime or raises. Avoid taking new debt before applying for a mortgage. Consider consolidating high-interest debt into a lower payment. Do not close old credit cards as this does not reduce DTI and may hurt credit score. Paying down credit card balances is the fastest way to lower DTI.
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Last updated: 24 March 2026