By Anowar
Reviewed by Jasmine
Use this calculator to calculate your debt-to-income ratio in just a few seconds. It helps you understand your mortgage affordability.
Because, it is an important metric that you can use to check your loan applications.
What is Debt-to-Income Ratio?
The debt to income ratio is the percentage of your monthly income that goes toward paying off debts.
This financial metric helps you to manage monthly payments as well as your debts.
What does DTI ratio mean?
- 43% or less: Acceptable for most mortgages
- 36% or less: Ideal DTI ratio for homebuyers
- Below 28%: Excellent ratio for loans
- Above 43%: May have difficulty qualifying for mortgages
How to Improve?
- Pay down existing debts of your high-interest credit cards
- Avoid new debt before applying for a mortgage
- Increase your income through side jobs
- Consider debt consolidation to lower monthly payments