Calculate Your Debt-to-Income Ratio

Plug in your numbers and see where you stand.

Debt-to-Income Calculator

To calculate your debt-to-income ratio, add up all of your monthly debts (aka “recurring debt”), including your mortgage or rent, car loans, student loans, credit card payments and any other loans. Then divide that by your gross (before taxes) monthly income.

Mortgage or rent
Car payments
Other monthly payments
Recurring monthly debt
Gross monthly income
Debt-to-income ratio
For comparison: 35% is the maximum debt-to-income ratio considered acceptable by experts.

After you’ve done the math, compare your results to this guide from Gerri Detweiler, author of Reduce Debt, Reduce Stress.

36 percent or less. This is a healthy debt load for most people. You’re swimming along fine.

37 percent to 42 percent. Not bad, but you’re probably having trouble keeping your head above water. Don’t build up any more debt and start paying off what you can.

43 percent to 49 percent. You’re treading water and in danger of going under. Take immediate and aggressive action to cut debt.

50 percent or more. Grab a life preserver and start paddling.