Debt To Income Ratio Calculator

What Is My Debt To Income Ratio?

Your debt to income ratio is the measure of how much you owe as a percentage of how much you earn. Basically it measures what percentage of your income you are spending on debt, including the servicing of that debt.

Lenders use this figure to determine whether they will extend credit to you in terms of a mortgage, home equity line of credit or sometimes, credit cards. While every lender has their own requirements and criteria for extending a loan, generally speaking a debt to income ratio under 40% is preferred. Over that number and you may have difficulty securing a loan or you may be required to pay a higher interest rate.

Calculating your own debt to income ratio before you seek financing can be very valuable. It can help you determine whether now is the time for you to look for a mortgage or loan, or if it would be better to pay down your debts beforehand. You can also get some idea of whether or not you will be considered a good risk to a potential lender.

Use our debt calculator to determine your personal debt to income ratio.

Canadians can determine their debt to income ratio here.

Debt To Income Ratio Calculator
Use this calculator to determine your debt to income ratio. Generally speaking, a debt ratio greater than or equal to 40% indicates you are not a good risk for lending money to.
Monthly income after taxes:
Spouse's monthly income after taxes:
Other monthly income:
Monthly rent/mortgage payment:
Monthly 2nd mortgage payment:
Total of all monthly car/vehicle payments:
Total of all monthly credit union loan payments:
All other monthly consumer loan payments:
Total of all monthly minimum charge card payments (Visa, Mastercard, dept. store, etc.):
Other monthly payments:
Pending monthly loan payments:

Your total income:
Your total monthly payments:
Your debt ratio:

This debt to income ratio calculator is just one of our useful financial calculators. Find the rest here.

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To achieve financial freedom, ideas such as: listening to good advice, learning how to make a budget, understanding credit repair possibilities, avoiding the scams, and generally becoming more knowledgeable of the credit card business, can all play a role in eliminating credit card and other debt. Find out how to get control of your personal budget here.