Debt-To-Income Ratio (DTI) Calculator


Debt-To-Income Ratio Calculator

What is a debt-to-income ratio?

A debt-to-income ratio (often abbreviated DTI) is the percentage of a consumer's monthly gross income that goes toward paying debts. A high debt ratio might indicate that your monthly expenses are becoming unmanageable. It also might discourage lenders from loaning you any more money. There are two main kinds of DTI, as discussed below.

  • The first DTI, known as the front ratio, indicates the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI (PITI includes mortgage principal and interest, mortgage insurance premium [when applicable], hazard insurance premium, property taxes, and homeowners' association dues [when applicable]).
  • The second DTI, known as the back ratio, indicates the percentage of income that goes toward paying all recurring debt payments, including those covered by the first DTI, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments, and legal judgments.

When using the debt-to-income ratio calculator enter the minimum payments you are required to pay each month for your credit cards and in the "other debts" section include home equity loans, judgments and any other monthly debts you pay.

Analysis Results

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