Debt-to-Income Ratio Calculator

Calculate your debt-to-income (DTI) ratio — a key metric lenders use to evaluate loan applications.

Gross Monthly Income ($)

Mortgage / Rent Payment ($)

Car Loan Payment ($)

Student Loan Payment ($)

Credit Card Minimum Payments ($)

Other Monthly Debt Payments ($)

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Enter your values and click Calculate

Your debt-to-income ratio (DTI) is the single most important number lenders examine when you apply for a mortgage, car loan, or personal loan. It compares your total monthly debt payments to your gross monthly income — the higher the ratio, the more of your income is already committed to existing obligations, and the riskier you appear to a lender. Conventional mortgage guidelines cap front-end DTI at 28% (housing costs only) and back-end DTI at 43–45% (all debts). FHA loans may accept up to 50% with compensating factors. This calculator computes your back-end DTI, categorises it, and shows exactly how much income remains after debt service so you can see where you stand before applying.

How It Works

DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100. All debt fields are summed to get total monthly obligations. That total is divided by the gross income and multiplied by 100 to express the ratio as a percentage. The DTI is then categorised: below 20% is Excellent, 20–36% is Good, 36–43% is Acceptable, 43–50% is Elevated, and 50%+ is High Risk — thresholds that broadly align with conventional lending guidelines. Income after debt payments is calculated as gross income minus total debt payments, giving a quick picture of remaining monthly cash flow. Gross income must be greater than zero.

Examples

Mortgage applicant

$6,000 gross income with $2,150 total monthly debt payments.

Result: DTI = 35.8% — Good. Likely to qualify for most loans.

High-debt borrower

$5,000 income with heavy debt load including high card minimums.

Result: DTI = 53% — High Risk. Most conventional lenders would decline.

Low-debt first-time buyer

$8,000 income, only a student loan and credit cards.

Result: DTI = 4.1% — Excellent. Very strong position to take on a new mortgage.

Frequently Asked Questions

What DTI do mortgage lenders require?

Most conventional lenders cap back-end DTI at 43–45%. FHA loans may allow up to 50% with strong compensating factors such as a large down payment or significant cash reserves. VA and USDA loans have their own guidelines but generally prefer DTI below 41%.

Should I use gross or net income?

Use gross (pre-tax) income. Lenders standardise on gross monthly income to make comparisons consistent across borrowers in different tax brackets and states.

How can I quickly lower my DTI?

You can lower DTI by paying off or paying down existing debts (which reduces the numerator), increasing your income (which increases the denominator), or avoiding taking on new debt before a loan application. Even eliminating a small credit card minimum payment can move the ratio meaningfully.