Debt to Income Ratio Calculator for Tracking Your Progress to Financial Freedom

Debt to Income Ratio Calculator Sign

This calculator will help you to calculate the all-important vital sign of your financial well-being.

If you're serious about achieving the financial freedom to choose your work based on how much joy and fulfillment it brings you, then you must be continually aware of your debt to income ratio (DTI).

DTI is a financial snapshot often used by lenders to determine the probability that you will be able to repay the money you are looking to borrow. Most lenders require a DTI of 36% or less to qualify you for financing. However, DTI is also an easy and invaluable way to track your progress toward achieving financial freedom.

Simply add up all of your monthly debt payments and divide by your total monthly income. If the DTI is smaller than your last ratio, then you're likely moving closer to financial freedom. Larger means you are likely moving further away from it.

Be sure to visit this calculator at least once every two months to recalculate your DTI to make sure you keep moving in the direction of financial freedom.

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Debt to Income Ratio Calculator

Calculate your debt to income ratio for the purpose of tracking your progress to financial freedom.

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Gross Monthly IncomeHousehold Gross Monthly IncomeHousehold Gross Monthly IncomeHousehold Gross Monthly Income

Household Gross Monthly Income section:

Enter your household total gross monthly income in this section.

Gross income is your total income before taxes and deductions are taken into account. The DTI calculator asks for your gross income only because that's the figure lenders use. However, if you are tracking your DTI for purposes other than qualifying for a loan, feel free to enter your Net Income (after taxes and deductions) instead. Just be sure to use the same method each time you return to this calculator.

Your income:Your income:Your monthly gross income:Your monthly gross income:

Your monthly gross income:

Enter your monthly gross (after tax) income, including wages, tips, bonuses, overtime, etc. Enter as a dollar amount, but without the dollar sign or any commas.

$
Spouse inc:Spouse income:Spouse's gross monthly income:Spouse's gross monthly income:

Spouse's gross monthly income:

Enter the gross (after tax) monthly income earned by your spouse or significant other, if applicable. Include wages, tips, bonuses and overtime pay. Enter as a dollar amount, but without the dollar sign or any commas.

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Other:Other income:Other monthly income:Other monthly income:

Other monthly income:

Enter the total of any other regular monthly income you receive. Include child support and alimony if you plan to include it every time you return. Enter as a dollar amount, but without the dollar sign or any commas.

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Monthly Debt PaymentsMonthly Reoccurring DebtHousehold Monthly Reoccurring DebtHousehold Monthly Reoccurring Debt Payments

Household Monthly Reoccurring Debt section:

Enter your household total monthly debt payment obligations in this section.

Rent or mtg:Rent or mtg pmt:Monthly rent or mortgage payment:Monthly rent or mortgage payment:

Monthly rent or mortgage payment:

Enter your mortgage payment (including taxes, insurance, and private mortgage insurance) if you own your home. If you rent, enter your monthly rent payment, plus any mandatory monthly renter fees. Enter as a dollar amount, but without the dollar sign or any commas.

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2nd mtg pmt:2nd mortgage pmt:Monthly 2nd mortgage payment:Monthly 2nd mortgage payment:

Monthly 2nd mortgage payment:

If you have a second mortgage or home equity loan, enter the monthly payment amount on this line. Enter as a dollar amount, but without the dollar sign or any commas.

$
Vehicle pmts:Vehicle payments:Monthly car and RV payments:Total of all monthly car and RV payments:

Total of all monthly car and RV payments:

Enter the combined total of monthly vehicle payments, including cars, recreational vehicles, motorcycles, boats, etc. Enter as a dollar amount, but without the dollar sign or any commas.

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Loan pmts:Other loan pmts:Total of any other loan payments:Total of any other consumer loan payments:

Total of any other consumer loan payments:

If you have a second mortgage or home equity loan, enter the monthly payment amount on this line. Enter as a dollar amount, but without the dollar sign or any commas.

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Min CC pmts:Minimum CC pmts:Total minimum credit card payments:Total minimum monthly charge card payments:

Total minimum monthly charge card payments:

Enter the combined monthly minimum payment for all charge cards, such as Visa, Mastercard, department stores, etc. Enter as a dollar amount, but without the dollar sign or any commas.

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Other pmts:Other payments:Other monthly payments:Other monthly payments:

Other monthly payments:

Enter any other monthly payments, such as child support, alimony, etc. Enter as a dollar amount, but without the dollar sign or any commas.

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Pending pmts:Pending payments:Pending monthly loan payments:Pending monthly loan payments:

Pending monthly loan payments:

Enter the total of any monthly loan payments that have not yet begun, but will in the near future. Enter as a dollar amount, but without the dollar sign or any commas.

$
Tot income:Total income:Total monthly household income:Total monthly household income:

Total monthly household income:

This is the total of all incomes entered in the top section of the calculator.

Tot pmts:Total debt pmts:Total monthly debt payments:Total monthly debt payments:

Total monthly household debt payments:

This is the total of all monthly debt payments entered in the middle section of the calculator.

DTI ratio:DTI ratio:Debt to income (DTI) ratio:Debt to income (DTI) ratio:

Debt to income (DTI) ratio:

This is your calculated DTI ratio.

DTI Levels: While DTI levels vary slightly among "financial experts," the following levels are generally accepted.

  • 36% or less: Reported to be a "healthy" debt load to carry for most people. If you suddenly lose your job, then your once "healthy" debt load won't feel so healthy.
  • 37%-40%: Not considered to be in the danger zone, but you definitely want to start working your away from the edge.
  • 41%-49%: Financial problems are likely imminent if you don't take immediate action to reduce your debt payments.
  • 50% or more: Living dangerously. Seek out professional help to start aggressively reducing your debt.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.