Debt-to-Income Calculator

What is your debt-to-income ratio?

Your debt-to-income ratio is a percentage number that lenders calculate and use to help determine if they’ll offer you credit. According to the Consumer Financial Protection Bureau (CFPB), debt-to-income is the number one way that lenders measure your ability to repay credit.

How to use this calculator

Gross Monthly Income

This is your total income before taxes. To calculate your gross monthly income, add up your salary, social security or retirement income, alimony or child support, investment income, and any other additional income.

Monthly Payments

Generally, lenders look at the following monthly expenses: monthly mortgage or rent payments, credit card payments, car payments, outstanding loan payments, student loan payments, child support or alimony payments, and home or renter insurance payments. Include as many payments and/or bills as they apply to you.

Understanding your results

While lenders may have different calculations and debt-to-income may only be one factor in their decision, the CFPB recommends that consumers keep their debt-to-income below 43% if they’re interested in being approved for a Qualified Mortgage.

Result What it means
35% or less Great
36% to 43% Good
44% or more Needs improvement

Please note that this calculator is for educational purposes only and is not an application for a loan. If you apply for a loan, your lender may calculate your DTI based on different criteria which may result in a different DTI ratio than is presented here.

How can I improve my debt-to-income ratio?

  • The more you can do to lower your amount of debt, the better. Review your finances to find out if you’re able to increase any of your monthly debt payments.
  • Try to avoid taking on more debt. If you have a habit of using your credit card for purchases you didn’t budget for, try to carry cash instead.
  • Bulk up your savings. If a big purchase can wait, think about growing your savings before taking out an expensive loan or putting the purchase on your credit cards.
  • Keep checking your progress by calculating your debt-to-income ratio on a monthly basis.

Disclaimer: Answers to questions in this FAQ are not specific to LendUp products or services and are general suggestions based on industry best practices. LendUp is not providing financial, legal, or tax advice. If you need or want such advice, please consult a qualified advisor.