The Debt-to-Income Ratio Calculator is a tool that helps users assess their financial health by calculating their debt-to-income (DTI) ratio. It supports additional income sources and optional debt factors, providing users with a percentage-based DTI along with contextual feedback on their result. This tool is ideal for individuals preparing for loan applications, financial planning, or credit evaluation.
1. In the "Monthly Income" field, input your regular gross monthly income (before taxes).
2. The field automatically formats your entry with commas for easier readability.
1. In the "Monthly Debt Payments" field, input the total of all monthly debt obligations (e.g., credit cards, loans, car payments).
1. Enter your yearly bonus or overtime income in the "Annual Bonus / Overtime Income" field.
2. Add any additional monthly income (e.g., rental income, side jobs) in the "Additional Monthly Income" field.
1. In the "Annual Debt" field, enter any debt that occurs on a yearly basis (e.g., annual loan fees or subscriptions).
2. If applicable, input your monthly housing expenses (rent or mortgage) in the "Monthly Housing Costs" field.
1. Click the “Calculate DTI” button.
2. The tool will display your DTI ratio as a percentage based on total monthly income and debts.
1. Below the result, a recommendation message will appear: