Lenders judge debt by its share of your income. See where you stand.
A too-much-debt calculator computes your debt-to-income ratio, the share of income going to debt payments, and tells you whether your debt load is comfortable or a warning sign.
Debt-to-income (DTI) is your total monthly debt payments divided by gross monthly income. Under about 28% is comfortable, up to 36% is manageable, and above 43% makes borrowing hard and signals strain. Lenders lean on it heavily, especially for mortgages.
Because DTI is a ratio, you improve it by reducing debt payments or raising income. Paying off a card or a small loan removes its payment and can move the ratio quickly. Avoiding new debt keeps it steady. A lower DTI both eases your budget and unlocks better borrowing terms.
Under 36% is generally comfortable; lenders often cap mortgage borrowers around 43%. Lower is better and eases your budget.
Pay down or eliminate a debt to remove its payment, avoid new debt, or increase income. Even clearing one small loan can help.
It's a key measure lenders use to decide how much you can borrow, and a high ratio signals your budget may be stretched.
See the exact formula and a worked example on our methodology page.