Use this calculator to quickly determine your debt-to-income ratio. This is the percentage of your gross income required to cover your housing and debt payments. The lower your debt-to-income ratio the more manageable your debt load will be. A low debt-to-income ratio increases the odds that you will be able to meet your monthly obligations. This ratio and your credit score are the two most important factors used by creditors when extending loans and credit.
Debt-to-Income Ratio Definitions
- Your income
- Your total gross income from your paycheck.
- Other income
- Any other regular income you receive, such as rental payments or investment income.
- House payment
- Monthly payment for your home or apartment. For a home payment, include principal, interest, property taxes and insurance (PITI).
- Auto payment
- Your monthly auto loan payment. This should be for your auto loan only, auto insurance should not be included.
- Auto two payment
- Any additional auto, truck or RV payments should be entered here.
- Credit card payments
- Enter the total of all of your credit card payments. For this calculation, please enter the minimum payment amounts, even if you pay off a larger portion of your balance each month.