Debt-to-Income Calculator
What the debt-to-income calculator does
The debt-to-income (DTI) calculator compares your monthly debt payments with your gross monthly income and expresses the result as a percentage. Enter the total of your required monthly debt payments and your income before tax, then press Calculate. The tool shows the ratio and labels it Excellent, Good, Risky or High Risk using the thresholds below.
The formula
DTI = monthly debt payments ÷ gross monthly income × 100
For example, $1,800 in payments on $6,000 of gross income gives a DTI of 30%.
What counts as debt
Include every payment a lender would see on your credit report or bank statements:
- Rent or mortgage payment, including property tax and insurance if escrowed
- Car loans and leases
- Student loans (the payment on your statement, or an assumed 1% of the balance if deferred)
- Minimum payments on credit cards
- Personal loans, buy-now-pay-later plans and any court-ordered support payments
Do not include utilities, groceries, insurance premiums, subscriptions or taxes; those are living expenses, not debt. Use gross income: salary before deductions, plus regular bonuses, overtime, rental income and any other income you can document.
How the ratio is rated
| DTI | Rating in this tool | What it usually means |
|---|---|---|
| Under 20% | Excellent | Plenty of room; lenders see low risk |
| 20% to 35% | Good | Manageable; most loan products available |
| 36% to 49% | Risky | Approval possible but with conditions; little margin for surprises |
| 50% and above | High Risk | Most lenders decline; payments consume half of income |
Mortgage lenders in the United States generally look for a total DTI of 43% or lower for a qualified mortgage, and many prefer 36%. Some government-backed loans allow higher ratios with strong credit or reserves.
Front-end and back-end ratios
Mortgage underwriters use two versions. The front-end ratio counts only the proposed housing payment and is typically capped near 28%. The back-end ratio, which is what this calculator computes, adds all other debts. If your front-end ratio is fine but the back-end is high, paying down a car loan or card balance before applying is often the quickest fix. The mortgage affordability calculator works the other way round: it tells you the largest payment that keeps your DTI within a lender’s limit.
Worked examples
A renter applying for a car loan. Rent $1,400, student loan $250, credit card minimums $90; gross income $5,200. DTI = 1,740 ÷ 5,200 = 33.5%, rated Good. Adding a $400 car payment would push it to 41%, into the Risky band, which is why the lender may offer a shorter term or ask for a larger deposit.
A couple applying jointly. Combined gross income $11,000; mortgage $2,300, two car loans $850, cards $150. DTI = 3,300 ÷ 11,000 = 30%. Comfortable for most products.
After a pay cut. Same payments of $3,300 on $7,500 income gives 44%: the household did nothing wrong, but a refinance would now be harder to obtain.
How to lower your ratio
- Pay off the smallest balances first to remove whole payments; the debt snowball and debt avalanche calculators compare the two common orders.
- Consolidate high-rate debt into a single lower payment; test it with the debt consolidation calculator.
- Avoid new credit in the months before a major application.
- Document all income, including side work, so the denominator is as large as it legitimately can be.
Related tools
The credit card payoff calculator shows how quickly a balance disappears at a given payment. The budget calculator puts debt payments in the context of all spending, and the debt-to-asset ratio calculator measures leverage against what you own rather than what you earn.
External references
Frequently asked questions
Should I use gross or net income?
Gross. Lenders calculate DTI on income before tax, so using take-home pay would overstate your ratio.
Is rent included if I am applying for a mortgage?
No. The lender replaces your rent with the proposed mortgage payment. For any other loan, rent is included.
What DTI do I need for a mortgage?
43% is the common ceiling for a qualified mortgage in the U.S., with 36% or lower preferred. Requirements vary by lender and loan program.
Does DTI affect my credit score?
No. Credit scores do not use income. DTI is a separate check lenders make from your application documents.
My DTI is under 20%. Should I borrow more?
A low ratio means you can afford more debt, not that you should take it on. It is also the position that lets you negotiate the best rates when you do borrow.