Wikibudget Debt to Income Calculator
Assess your financial health with precision. All calculations happen in your browser - your data never leaves your device.
Your Financial Details
Monthly Debt Payments
Add all your recurring monthly debt obligations
Note: Include only recurring monthly debt payments like mortgage/rent, car loans, credit card minimum payments, student loans, and other installment debts.
Explore how changes to your finances would affect your DTI ratio:
Your Financial Health Report
Front-End DTI Ratio
Back-End DTI Ratio
DTI Tip of the Day
Even a small increase in income can significantly improve your debt-to-income ratio.
Improve Your Financial Health
Reduce Expenses
- Create a detailed budget to track spending
- Cut discretionary spending by 20%
- Negotiate lower rates on services
- Consider downsizing housing if possible
Increase Income
- Pursue a promotion or raise
- Develop a side business or freelance
- Rent out unused space or items
- Acquire new skills for better opportunities
Strategies to Improve Your DTI Ratio
A DTI ratio below 36% increases your chances of loan approval and better interest rates.
Debt Reduction Strategies
- Avalanche Method: Pay off debts with the highest interest rates first to save the most money
- Snowball Method: Pay off smallest debts first for psychological wins
- Debt Consolidation: Combine multiple debts into one with a lower interest rate
- Balance Transfers: Move high-interest credit card debt to a 0% APR card
Understanding Debt-to-Income Ratio
Your DTI ratio is one of the most important metrics lenders use to evaluate your financial health and creditworthiness.
Front-End DTI (Housing Ratio)
Calculated as: Monthly Housing Costs ÷ Gross Monthly Income
Housing costs include mortgage or rent, property taxes, homeowners insurance, and HOA fees.
Back-End DTI (Total Debt Ratio)
Calculated as: Total Monthly Debt Payments ÷ Gross Monthly Income
Includes all recurring debts: housing, auto loans, credit cards, student loans, personal loans, and other obligations.