How to use this calculator
- Enter your gross income, meaning your pay before taxes and deductions, and choose whether it’s per year or per month. If you’ll apply for a loan with someone else, use your combined income and debts.
- Enter your monthly debt payments: rent or mortgage, car loan, student loans, credit card minimums, personal loans and any other required payments such as child support.
- Read the result. You’ll see your debt-to-income ratio, your housing ratio, how lenders tend to view them, and what it would take to bring them down.
Nothing you enter is sent anywhere: the math runs in your browser.
What is a debt-to-income ratio?
Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments. Lenders use it to judge whether you can take on a new loan, such as a mortgage, car loan or personal loan. A lower DTI means more of your income is free, which makes you a lower risk.
There are two versions:
- Back-end DTI counts all your monthly debt payments, housing included. When people say “DTI”, this is usually the one they mean.
- Front-end DTI, or the housing ratio, counts only your housing payment. Mortgage lenders look at it alongside the back-end ratio.
The formula behind the numbers
Back-end DTI = Total monthly debt payments ÷ Gross monthly income × 100
Front-end DTI = Monthly housing payment ÷ Gross monthly income × 100
Gross monthly income = Annual gross income ÷ 12
To show what it takes to reach a target such as 36%, the calculator works backward. The most you can pay toward debt is your monthly income × 0.36, and the income you’d need for today’s payments is your total payments ÷ 0.36.
What counts as debt, and what doesn’t
Include required monthly payments that show up on a credit report or in a court order:
- rent, or your mortgage payment with property tax, home insurance and HOA dues;
- car loans and leases, student loans and personal loans;
- the minimum payment on each credit card, even if you usually pay more;
- child support and alimony you pay.
Leave out everyday living costs: groceries, utilities, phone and internet, car and health insurance, subscriptions and taxes withheld from your pay. They matter for your budget, but lenders don’t count them in DTI.
What is a good debt-to-income ratio?
Every lender sets its own limits, but these ranges are a useful guide:
| DTI | What it usually means |
|---|---|
| Up to 36% | Healthy. Most lenders are comfortable, and you have room in your budget. |
| 36% to 43% | Manageable. Many lenders still approve, but there’s less room for new debt. |
| 43% to 50% | High. Approval gets harder and may require strong credit or savings. |
| Over 50% | Very high. Most lenders will decline new credit until debt comes down. |
For mortgages, a common rule of thumb is the 28/36 rule: no more than 28% of gross income on housing and no more than 36% on all debt. Actual limits can be higher. For example, Fannie Mae’s guidelines allow a total DTI of up to 36% for manually underwritten conventional loans, up to 45% with strong credit and reserves, and up to 50% for loans approved through its automated underwriting system.
Worked example
These are the numbers the calculator loads with: $72,000 a year in gross income, or $6,000 a month.
| Monthly payment | Amount | % of gross income |
|---|---|---|
| Rent or mortgage | $1,650 | 27.5% |
| Car loan | $420 | 7% |
| Student loans | $250 | 4.2% |
| Credit card minimums | $150 | 2.5% |
| Total | $2,470 | 41.2% |
The back-end DTI is 41.2%, in the manageable range. The housing ratio is 27.5%, just within the 28% guideline. To reach 36%, total debt payments would need to fall to $2,160, a cut of $310 a month. Or gross income would need to rise by $861.11 a month, about $10,333 a year.
How to lower your DTI
- Pay off a small debt completely. Clearing one card or loan removes its whole payment from the calculation. The debt snowball vs avalanche calculator shows which to tackle first.
- Pay down credit card balances. Card minimums fall as balances fall, which lowers your DTI.
- Avoid new debt before applying. A new car loan or card balance just before a mortgage application can push your DTI over a lender’s limit.
- Refinance or consolidate carefully. A lower payment lowers your DTI, but check the total cost with the debt consolidation calculator.
- Count all eligible income. Lenders may count steady income from a second job, a co-borrower or other documented sources.
Frequently asked questions
How do I calculate my debt-to-income ratio?
Add up all your monthly debt payments, divide by your gross monthly income, and multiply by 100. For example, $2,470 in payments on $6,000 of monthly income is a DTI of 41.2%.
Is DTI based on gross or net income?
Gross income, meaning before taxes and other deductions. That’s why a DTI that looks fine to a lender can still feel tight in your own budget.
Should I include rent if I’m applying for a mortgage?
To see your current DTI, include your rent. To see your DTI after buying, replace rent with the expected mortgage payment, including property tax, home insurance and any HOA dues. Lenders use the new housing payment.
Does my DTI affect my credit score?
No. Credit reports don’t include your income, so DTI isn’t part of your credit score. Lenders look at it separately when you apply.
What’s the maximum DTI for a mortgage?
It depends on the loan type and the lender. Many lenders look for 36% to 43%, and some programs go up to 50% for borrowers with strong credit or savings. Ask your lender for the limit that applies to you.
Is my information saved or shared?
No. The calculator runs entirely in your browser. If you use “Copy link to results”, your numbers are stored only in that link, so share it only with people you trust.
This calculator is for education and planning, and it isn’t financial advice. Lenders calculate DTI with their own rules about which income and debts count, so their figure may differ from yours.