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Do I have too much debt?

One number answers it: your debt-to-income ratio. Add up what you owe each month, divide it by what you earn before tax, and see where you stand. The calculator runs in your browser. Nothing is saved and no email is asked for.

Joshua Humada, Founder of MoneyYogi

Joshua Humada, CRPC®, AAMS®

Founder, MoneyYogi

How do you know your income?

Your total pay for the year, before deductions.

Rent or mortgage, car, student loans, minimum card payments, other loans.

Your debt-to-income ratio

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Enter your income and monthly debt payments above and the ratio appears here.

0%5%15%30%45%60%+

How the number is made

Your debt-to-income ratio is your total monthly debt payments divided by your gross monthly income, shown as a percentage. A household paying $2,000 a month toward debts that earns $8,000 a month before tax has a ratio of 25 percent.

Lenders care because it predicts whether a new payment fits. It is also a useful personal check: it tells you how much of every paycheck is already promised before the month begins.

Count these payments

  • Rent or mortgage, including taxes and insurance if escrowed
  • Car loans and leases
  • Student loans
  • Minimum credit card payments
  • Personal loans, BNPL plans, and any other loan payments

Leave these out

  • Groceries, gas, and dining
  • Utilities, phone, and internet
  • Insurance premiums you pay directly
  • Subscriptions and everyday card spending you pay in full

What the benchmarks mean

RatioWhat it signals
0% to 5%Atypically low. Almost nothing of your income is promised to debt each month.
5% to 15%Low. Well below average. Plenty of room left for saving and investing.
15% to 30%Typical. The normal range for a household with a housing payment or a car loan.
30% to 45%High. Debt payments are starting to crowd out saving and leave less slack in the month.
Over 45%Atypically high. Heavy. A large share of the month's income is already promised to debt payments.

Most households land somewhere between 15 and 30 percent. Past 45 percent the payments start running the month instead of the other way around. These are guideposts, not verdicts. A household with a high income and a short-term loan at 45 percent is in a different position from one with the same ratio and no savings. Lenders do not use one universal limit either. It shifts by loan program, credit, down payment, and reserves.

Where to go from here

Track it in MoneyYogiConnect your accounts read-only and MoneyYogi keeps your debts, payments, and income current automatically.Learn moreReview it with an advisorMoneyYogi Personal pairs the software with an ongoing one-on-one advisor who helps you work the number down.Learn moreRun a business too?MoneyYogi Business covers your business cash flow and your personal finances together, so both sides stay clear.Learn more

Common questions

What counts as a monthly debt payment?

Rent or your mortgage, car payments, student loans, minimum credit card payments, and any other loan payments. Everyday spending like groceries, utilities, insurance, and phone bills is not debt, so leave those out.

Is gross income before or after tax?

Before tax. Use your total income before any deductions, which is the number on pay stubs and tax returns. If you are self-employed, use your average monthly gross revenue minus business expenses.

What is a good debt-to-income ratio?

Under 15 percent is low. Between 15 and 30 percent is typical for a household with a housing payment. Between 30 and 45 percent is high, and over 45 percent is atypically high. Lenders do not use one universal limit, so the cutoff moves with the loan program, your credit, your down payment, and your reserves.

Does my DTI include my rent if I do not own a home?

For a future mortgage, lenders count your expected housing payment rather than your current rent. For a personal picture of your monthly obligations, including rent gives you the truest view of what leaves your account each month.

Is any of this information stored or shared?

No. The calculator runs entirely in your browser. Nothing you type is sent anywhere, saved, or tied to an email address.

MoneyYogi LLC provides software only and does not provide investment, tax, or legal advice. This calculator is general information, not a recommendation for your situation. Lender requirements vary by loan program and lender.

Keep the whole picture in one place.

MoneyYogi tracks your accounts, debts, and payments automatically, so the numbers on this page stay current without a spreadsheet.

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