Debt-to-Income Calculator

What this calculator does

This calculator divides your total monthly debt payments by your gross monthly income to find your debt-to-income ratio, shown as a percentage. Lenders use this number to judge whether you can take on a new loan, and a lower ratio signals more room in your budget. You enter your income and recurring debts, and you get a clear figure you can compare against common lender limits.

When to use this method

Reach for this calculator before you apply for a mortgage, car loan, or refinance, since most lenders want your ratio under 43 percent and many prefer 36 percent or less. It also helps when you want a quick read on how stretched your budget already is. If the number comes back higher than you like, the next step is a payoff plan. Try the debt snowball calculator to see how knocking out your smallest balances first can lower your monthly payments and bring your ratio down.

How to get started

Gather your most recent pay stubs and a current list of your monthly debt payments, including credit cards, student loans, auto loans, and any mortgage or rent. Enter your gross income, the amount before taxes, then add each debt payment. The calculator returns your ratio right away so you can test different scenarios, such as paying off a card or adding a new loan. Once you know where you stand, build a plan to bring the ratio lower over time and check back as your balances change. Pairing this with a budget planner makes it easier to free up cash for faster payoff.