Debt Calculator
Calculate your total debt across all accounts, monthly payment requirements, and debt-to-income ratio. Get a comprehensive view of your debt situation and plan your repayment strategy.
Debt Accounts
Debt Summary
Total Debt:
$0.00
Number of Accounts:
0
Average Interest Rate:
0.00%
Total Monthly Payments:
$0.00
Debt-to-Income Ratio
Monthly Income:
$0.00
Debt Payments:
$0.00
Other Expenses:
$0.00
DTI Ratio:
0.00%
Debt Analysis
Highest Interest Rate:
0.00%
Lowest Interest Rate:
0.00%
Debt Load Rating:
N/A
Understanding Your Debt Situation
Understanding your total debt load is crucial for financial planning. This calculator helps you assess your debt-to-income ratio, total monthly payments, and overall debt health to make informed decisions about debt management.
What is Debt-to-Income Ratio?
DTI Calculation
- (Monthly debt payments ÷ Monthly income) × 100
- Includes all debt payments
- Used by lenders for approval
- Key factor in financial health
DTI Categories
- Excellent: Below 20%
- Good: 20-35%
- Fair: 35-43%
- Poor: Above 43%
Front-End DTI
- Housing costs only
- Mortgage, insurance, taxes
- Lenders prefer below 28%
- Used for mortgage approval
Back-End DTI
- All debt payments
- Includes housing + other debt
- Lenders prefer below 36%
- More comprehensive ratio
Debt Types and Typical Interest Rates
| Debt Type | Typical Interest Rate | Average Balance | Payoff Priority |
|---|---|---|---|
| Credit Cards | 15-25% | $5,000-10,000 | High |
| Personal Loans | 10-20% | $5,000-15,000 | Medium-High |
| Student Loans | 4-8% | $20,000-50,000 | Medium |
| Auto Loans | 4-10% | $15,000-30,000 | Low-Medium |
| Mortgages | 3-5% | $200,000-400,000 | Low |
Debt Management Strategies
Effective Debt Reduction Strategies
Avalanche Method
- Pay minimums on all debts
- Focus extra payments on highest interest rate
- Mathematically optimal
- Saves the most money
Snowball Method
- Pay minimums on all debts
- Focus extra payments on smallest balance
- Psychologically motivating
- Builds momentum
Debt Consolidation
- Combine multiple debts
- Single monthly payment
- Potentially lower interest rate
- Simplify payments
Balance Transfers
- Move debt to 0% APR card
- Pay off during promotional period
- Avoid transfer fees
- Temporary solution
When to Seek Professional Help
Credit Counseling:
- DTI ratio above 43%
- Struggling to make minimum payments
- Need debt management plan
- Non-profit organizations
Debt Settlement:
- Severely behind on payments
- Unable to get new credit
- Negotiate reduced balances
- Damages credit score
Bankruptcy:
- Last resort option
- Severe financial hardship
- Eliminates most debts
- Long-term credit damage
Budget Counseling:
- Create spending plan
- Learn money management
- Build emergency fund
- Prevent future debt
Key Takeaways for Debt Management
- Calculate your debt-to-income ratio to understand your debt load
- Focus on high-interest debt first for maximum savings
- Pay more than the minimum payment whenever possible
- Consider debt consolidation for simpler payments
- Build an emergency fund to avoid new debt
- Monitor your credit score and utilization ratio
- Seek professional help if debt feels overwhelming
- Being debt-free is achievable with consistent effort and smart strategies