Debt Ratio Calculator
Measure your debt-to-income and debt-to-asset ratios to evaluate financial health.
Results
What Is a Debt Ratio Calculator?
A debt ratio calculator helps you understand how much of your income and assets are consumed by debt. It computes front-end and back-end debt-to-income (DTI) ratios and your debt-to-asset ratio, which lenders use to assess creditworthiness.
How to Use This Calculator
- Enter your gross monthly income.
- Fill in all monthly debt payments including housing, car, credit cards, student loans, and others.
- Enter your total assets and total liabilities.
- Click Calculate to see your ratios and an overall assessment.
Frequently Asked Questions
What is a good debt-to-income ratio?
A front-end DTI of 28% or less and a back-end DTI of 36% or less are generally considered good by lenders.
What does debt-to-asset ratio measure?
It compares your total liabilities to your total assets. A ratio of 40% or lower indicates a stronger financial position.
Why do lenders care about DTI?
DTI shows your ability to manage monthly payments and repay borrowed money. Lower ratios mean lower risk for lenders.
Can I improve my ratios?
Yes. You can increase income, pay down debt, or reduce monthly obligations to improve your DTI and debt-to-asset ratios.