Debt-to-Income Calculator

Understand your Debt-to-Income Ratio (DTI).

Knowing your DTI is an essential factor to understanding your financial health.
Enter your income and debt payments to calculate your DTI and see how healthy your debt is.


Your debt is at a manageable level and you most likely have money left over for savings each month. You should feel good about how much of your income is going toward your debt!

The CFPB advises to start small, plan for the unexpected, and save for the future. You're likely in a healthy financial position to begin or continue actively saving, start an emergency fund, and set money aside for retirement!

Experts say you're likely in a good place for now—especially if you have a mortgage—but there is room to improve! You may want to look into ways to reduce debt payments or increase your income.

This could put you in a better position to handle unforeseen expenses, save for future goals, and feel confident about your financial health!

The CFPB suggests to start small by evaluating your savings and making a savings plan. Next, plan for the unexpected and eventually for the future.

Remember, if you find yourself in a situation where you need to borrow, a fixed rate-fixed payment personal loan is a healthy way to budget and ensure you pay off your debt in a set period of time.

Check out Best Egg’s personal loan options with no impact to your credit score!

More than half of your income is going toward debt payments. Unfortunately this could limit your borrowing options, your ability to save for unforeseen events, and ability to plan for retirement.

The good news is that there may be ways for you to pay down debt faster and save money! Here are three tips to reducing your debt:

  1. Make a debt reduction plan (read more)
  2. Find simple ways to improve your debt or to increase your income (read more)
  3. Combine multiple debts into a single consolidated loan with fixed payments and a clear pay off time

What is Debt to Income Ratio?

Your debt-to-income (DTI) ratio is a personal finance measure that compares your overall debt to your overall income. To calculate it, you divide your recurring monthly debt payments by your monthly gross income. The resulting number is expressed as a percentage.

Lenders use this percentage to assess your ability to manage monthly payments and repay the money you want to borrow from them. Ultimately, it helps lenders determine how much money they’re willing to lend you.

Debt to income ratio levels

Why calculate your DTI ratio?

The lower your DTI ratio, the more likely you are to receive the loan amount you want because your low DTI ratio illustrates a good balance between debt and income (essentially, you don’t spend more than you can afford). Low DTI numbers typically indicate to lenders that you as a borrower are more likely to successfully manage your monthly payments with a new loan debt.

A higher DTI ratio could be a red flag for lenders because it means you have too much debt for your income. To the lender, this means you may not be as able to meet the additional financial obligations from a new loan. Many lenders don’t approve big loans for borrowers with high DTI ratios for this reason.

Bottom line: Knowing your DTI ratio gives you peace of mind

For the sake of your financial health, it’s crucial to keep your DTI ratio as low as possible. Determining your personal DTI ratio has never been easier – just use our simple debt-to-income calculator to quickly discover yours. While you can’t plan for the unexpected, knowing your financial status ahead of time can pave the way to a smoother borrowing process.

Read more about personal loans to see if Best Egg can help you fund your path to financial freedom!