Calculating Your DTI Ratio

Your DTI ratio, or debt-to-income ratio, is one way to get a glimpse of your overall financial health. Simply put, your DTI ratio compares how much you owe each month to how much you earn.

But not all of your monthly expenses are factored into your DTI ratio. Your DTI calculation includes all monthly debt payments (like car and credit card payments) and your monthly housing payment (rent or a mortgage payment). It does not take into account expenses for food, health insurance, utilities, gas, and entertainment, so keep these expenses in mind.

Use our worksheet to easily calculate your DTI ratio.

What’s a good DTI ratio? Under 36% is best, but if your DTI ratio is above this, don’t rule out buying a home just yet! Contact your Academy Loan Officer to discuss your mortgage options—no matter if your number is high or low.


At Academy Mortgage, we create life-changing experiences through lending. CONTACT US today to explore your financing options.