Debt-to-Income Ratio Calculator

Lenders generally use these ranges: 35% or below is considered good — you have manageable debt relative to income. 36%–49% is fair — you can likely get approved but may face higher rates. 50% or above is considered poor — most lenders will deny applications at this level. For a mortgage, most conventional lenders cap the total DTI at 43%–45%, while FHA loans may allow up to 50% with compensating factors.

DTI includes recurring monthly debt obligations: mortgage or rent, car loan payments, student loan payments, credit card minimum payments, personal loans, child support, and alimony. It does not include utilities, groceries, insurance premiums (unless bundled with a mortgage), subscriptions, or other living expenses. Lenders pull this from your credit report and loan application.

Two approaches: increase income or reduce debt. To reduce debt, focus on paying down credit cards and small loans, avoid taking on new debt, and consider consolidating at a lower rate. To increase income, consider asking for a raise, starting a side hustle, or including a co-borrower on the loan application. Even paying off a single small loan can meaningfully improve your DTI.

DTI itself is not a factor in credit scoring models (FICO, VantageScore). However, the underlying debt levels that drive a high DTI — especially high credit card utilization — do affect your score. A high DTI signals risk to lenders during manual underwriting even if your credit score is good. Think of DTI as a separate filter lenders apply on top of your credit score.