Evaluate Your Loan Eligibility and Gain Insights into Your Financial Stability

Income & Debts
Results
Total Monthly Debts: $0.00
Debt-to-Income Ratio: 0.00%
Remaining Monthly Income: $0.00
Your DTI ratio is safe (0-35%). You're in a financially stable position.
Chart
Remaining Income: 100.00%
Monthly Debt: 0.00%
Description
This Debt-to-Income Ratio Calculator helps determine your eligibility for home loans. Lenders typically look for a DTI ratio of 50% or less. A lower DTI ratio indicates better financial health.
Here’s how each value is calculated:
  • Annual Income: Your total yearly income before taxes, which is divided by 12 to determine your monthly income.
  • Monthly Debt Payments: The sum of all your recurring monthly debt obligations, including:
    • Mortgage or rent payments
    • Credit card minimum payments
    • Car loan payments
    • Student loan payments
    • Alimony and child support payments
    • Other recurring debts
  • Debt-to-Income Ratio (DTI):The percentage of your monthly income that is used to pay debts. It is calculated using the formula:
    DTI = (Total Monthly Debt Payments / Monthly Income) × 100
  • Remaining Monthly Income: The amount left after subtracting total monthly debt payments from monthly income:
    Remaining Income = Monthly Income - Total Monthly Debt Payments
A lower DTI ratio indicates better financial health, while a higher DTI may suggest difficulty in managing debt obligations. Lenders typically prefer a DTI below 36%, with 43% often being the maximum allowable limit for mortgage qualification.