Debt-to-Income Ratio Calculator

Financial Terms Explained

• DTI Ratio: Debt-to-Income ratio shows what percentage of your income goes toward debt payments
• Amortization: Gradual repayment of a loan through monthly payments
• Principal: The original amount of money borrowed
• Interest Rate: The cost of borrowing money, expressed as a percentage
• Loan Term: The period over which a loan agreement is valid

5 Smart Financial Tips

1. Keep your DTI ratio below 36% for better loan eligibility
2. Pay off high-interest debts first to reduce interest costs
3. Always compare loan terms from multiple lenders
4. Include all recurring debts when calculating DTI
5. Consider shorter loan terms for lower total interest payments