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- Your debt-to-income (DTI) ratio is your total monthly debt payments divided by your gross monthly income.
- Lenders use it to judge whether you can take on a new loan. 36% or lower is often seen as strong.
- Many lenders accept up to about 43%, and some go higher depending on credit and loan type.
- This calculator also shows your housing ratio and how much more debt you could add.
How to use the debt-to-income ratio calculator
Enter your gross income
Choose monthly or annual and type your income before tax. Add the income of everyone on the application.
Enter your housing payment
Use your rent, or for a mortgage the full payment with tax, insurance and HOA.
Add your other debts
Enter the monthly payments on car loans, student loans and the minimum payments on credit cards.
Read your ratio
See your DTI, the rating, your housing ratio and the extra monthly debt you could add.
If you are planning to buy a home, the Home Affordability Calculator turns your DTI limit into a maximum price.
How DTI is calculated
DTI adds every monthly debt payment and divides the total by your gross monthly income, which is your income before taxes. Everyday costs such as groceries, utilities, phone bills and insurance are not counted as debts.
DTI formulas
Total monthly debts = housing + car + student loans + card minimums + other debts
DTI = total monthly debts ÷ gross monthly income × 100
Housing ratio (front-end) = housing payment ÷ gross monthly income × 100
Room for more debt = gross monthly income × limit − total monthly debts
The two limits most often used are 36% and 43% of gross income.
DTI examples
Example 1: a typical household
Gross income of $6,500 a month with $1,700 for housing, $400 for a car, $250 for student loans and $150 in card minimums.
Paying off the $400 car loan would drop the total to $2,100 and the DTI to 32.31%.
Example 2: income given per year
The same household, with income entered as $78,000 a year.
The result is identical, because the calculator converts annual income to monthly.
Example 3: a higher ratio
Gross income of $7,000 a month with $2,000 for housing, $500 for a car, $400 for student loans and $300 in card minimums.
The housing ratio is near the 28% guideline, but the other debts push the total above 43%.
DTI at different debt levels
Monthly debts on $6,000 of income
These examples show the ratio for total monthly debts of different sizes.
Each $100 of monthly debt adds about 1.67 points to the ratio at this income.
How lenders often read DTI
These bands are general guides. Each lender and loan program sets its own limits.
A lower DTI generally gives you more loan options and better terms.
Where a DTI calculator helps
Before applying for a mortgage
Check where you stand so there are no surprises when the lender runs the numbers.
Planning to lower your ratio
See how paying off a car loan or a card changes the percentage.
Checking a new loan
Add the payment of a planned loan to see if you stay within your limit.
Renting an apartment
Some landlords look at income and debts, so you can check your rent ratio.
Lenders also look at your credit score, savings, job history and the loan type. Some programs allow higher ratios, while others set stricter limits. Use this result as a guide and ask your lender for its exact rules. This calculator gives an estimate and is not financial advice.
Debt-to-income ratio calculator FAQ
What is a debt-to-income ratio?
It is the share of your gross monthly income that goes to debt payments. A DTI of 40% means 40 cents of every pre-tax dollar goes to debts.
What is a good DTI ratio?
A DTI of 36% or lower is often considered strong. Many lenders accept up to about 43%, and some go higher for certain loans, but a lower ratio gives you more choices.
What is the difference between front-end and back-end DTI?
Front-end DTI looks only at housing costs. Back-end DTI includes all monthly debts. The calculator shows both, and lenders mostly focus on the back-end ratio.
Which debts count in DTI?
Housing payments, car loans, student loans, minimum credit card payments, personal loans, child support and alimony count. Utilities, groceries, insurance and phone bills do not.
Is DTI based on gross or net income?
It uses gross income, which is your income before taxes and other deductions.
How can I lower my DTI?
Pay down or pay off debts, avoid new loans before applying, or increase your income. Paying off a small loan with a high monthly payment is often the quickest way.