Calculate your debt-to-income ratio to determine if you qualify for an auto loan. See front-end and back-end DTI limits, and find out your maximum affordable loan amount.
Your debt-to-income (DTI) ratio is a critical factor lenders use to determine your eligibility for an auto loan. It measures how much of your monthly income goes toward paying debts. Most lenders prefer a back-end DTI (all monthly debts including the new car payment) of 40% or less, while front-end DTI (housing + car payment) should ideally stay below 28%. A lower DTI means you're more likely to get approved and qualify for better interest rates.