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Debt-to-Income Ratio Calculator

Use this debt-to-income ratio calculator to find out your DTI, a key number lenders use to evaluate whether you can afford a mortgage or other loan. Enter your monthly income and debt payments to see where you stand.

Your total monthly income before taxes and deductions. Include salary, wages, bonuses, freelance income, and any other regular income sources.

Your monthly housing payment including mortgage principal, interest, property taxes, and insurance (PITI) or your monthly rent payment.

Your total monthly car loan or lease payment. Include all vehicles.

Your total monthly student loan payment across all student loans.

The total minimum monthly payments across all your credit cards. Use the minimum payment amount, not what you actually pay.

Any other recurring monthly debt payments such as personal loans, alimony, child support, or medical debt payments.

Your debt-to-income ratio compares your total monthly debt payments to your gross monthly income. Lenders use DTI as a primary factor when deciding whether to approve you for a mortgage, car loan, or other credit. This calculator breaks down your DTI and shows how lenders may view your financial profile.

How It Works

Debt-to-Income Ratio Formula

DTI = (Total Monthly Debt Payments / Monthly Gross Income) x 100

Add up all your monthly debt payments and divide by your monthly gross income, then multiply by 100 to get a percentage.

Total monthly debt payments include housing, car loans, student loans, credit card minimums, and any other recurring debt obligations.

Monthly gross income is your income before taxes and deductions.

The ratio is expressed as a percentage where lower is better from a lending perspective.

Lenders look at DTI to assess whether you have enough income to handle additional debt.

Important Notes:

  • •This calculator computes your back-end DTI, which includes all monthly debt obligations. Front-end DTI, which only includes housing costs, is sometimes evaluated separately.
  • •Lenders use gross income (before tax), not net income, for DTI calculations.
  • •Credit card minimums rather than actual payments are used because lenders evaluate your minimum obligations.
  • •Some debt types like utilities, insurance, subscriptions, and groceries are not included in DTI because they are not considered debt obligations by lenders.

Worked Example

A borrower earns $6,000 per month gross and has $1,500 in mortgage payments, $400 in car payments, $300 in student loans, $150 in credit card minimums, and no other debt.

Inputs:

  • monthly Gross Income:6,000
  • mortgage Rent:1,500
  • car Payment:400
  • student Loans:300
  • credit Card Minimums:150
  • other Debt Payments:0

Result:

Total monthly debt payments are $2,350. The debt-to-income ratio is 39.2%. Remaining monthly gross income after debt payments is $3,650, and the estimated annual gross income is $72,000. A DTI of 39.2% is above the preferred 36% threshold but may still be acceptable for some mortgage programs.

Who Is This Calculator For?

  • mortgage applicants
  • loan applicants
  • homebuyers
  • anyone checking their borrowing capacity

Frequently Asked Questions

Most lenders prefer a DTI below 36%, with no more than 28% going toward housing costs. Some mortgage programs like FHA loans accept DTI up to 43% or even 50% with compensating factors like a strong credit score or large cash reserves.
Front-end DTI only includes housing costs divided by gross income. Back-end DTI includes all monthly debt payments divided by gross income. Most lenders evaluate both, but back-end DTI is typically the more critical number. This calculator shows your back-end DTI.
Lenders use gross income, which is your income before taxes and deductions. This means your DTI may look manageable on paper even if your actual take-home budget is tight. Always consider your after-tax income when evaluating affordability.
You can lower your DTI by paying off existing debts, increasing your income, or both. Paying off credit cards and small loans is often the fastest way to improve your ratio. Avoid taking on new debt before applying for a mortgage.
Lenders include mortgage or rent, car loans, student loans, credit card minimum payments, personal loans, alimony, and child support. They typically do not include utilities, insurance premiums, groceries, subscriptions, or other non-debt expenses.
Some government-backed loan programs like FHA and VA loans may allow DTI ratios above 43% if you have compensating factors such as a high credit score, significant savings, or a strong employment history. However, options become limited and interest rates may be higher.

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Last updated: April 11, 2026