What your Lending Buddy DTI result means
Your debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross (pre-tax) monthly income. Lenders use it to judge whether a new payment fits your budget. The calculator above shows your DTI today and after adding the loan payment you're considering, so you can request an amount you can truly afford.
| Back-end DTI | How lenders often view it |
|---|---|
| Under 36% | Comfortable — room for a new payment |
| 36%–43% | Manageable — lenders may look harder at income and credit |
| 43%–50% | Stretched — expect smaller amounts or higher rates |
| Over 50% | High risk — consider lowering debt before borrowing |
General guidelines only. Each lender sets its own criteria.
Worked example
Hypothetical: $4,000 gross monthly income, $1,200 rent, $350 in other debts. Today's DTI is $1,550 ÷ $4,000 = 38.75%. Adding a $100 loan payment brings it to $1,650 ÷ $4,000 = 41.25%.
Frequently Asked Questions
What is a good debt-to-income ratio for a personal loan?
Many personal lenders prefer a back-end DTI below about 36%, and some will consider borrowers up to 40–50% with strong income or credit. Lower is always better: it shows you have room in your budget for a new payment.
Does Lending Buddy use my DTI?
Lending Buddy doesn't make credit decisions, but the lenders in our network commonly review income and existing debts. Knowing your DTI helps you request an amount whose payment fits your budget.
What counts as debt in DTI?
Recurring monthly debt payments: rent or mortgage (PITI), car loans, student loans, minimum credit card payments, personal loans and court-ordered payments such as child support. Utilities, groceries and insurance generally aren't included.