The SmartDebt to Income Ratio Calculator
For educational purposes and a quick look.
WHAT IS A DEBT-TO-INCOME RATIO?
Your debt-to-income (DTI) ratio and credit history are two important financial health factors lenders consider when determining if they will lend you money.
At the same time, knowing how big is your debt portion out of your income will roughly tell you about your financial health.
To calculate your estimated DTI ratio, simply enter your current income and payments. We’ll help you understand what it means for you.
Please note this calculator is for educational purposes only and is not a denial or approval of credit.
OUR DEBT-TO-INCOME RATIO GUIDE
Once you’ve calculated your DTI ratio, use our guideline below to find out your current situation.
WHAT IS A GOOD DTI RATIO?
The lower the better, naturally. More specifically, a DTI of 35% or below is generally considered good – though you might not qualify for a loan with a DTI that’s above 43%.
Why 43%? Lenders came up with this number
Your DTI is a factor
DTI + YOUR EXPENSES = WHAT IS YOUR REAL FINANCIAL HEALTH STATUS?
To have a more accurate picture of your current situation, you will need to add an additional 36% (average) for expenses.
Example, if you are looking at 40% Debt To Income ratio, you need to add 36% on top of that. Right now, you will be looking at 76%. It shows you have 24% excess of your income for savings.