How to use the Debt-to-Income Calculator
- 1 Enter your gross monthly income, before tax.
- 2 Enter your monthly rent or mortgage payment.
- 3 Add car, student loan, credit card minimum and any other monthly debt payments.
- 4 Read your DTI percentage, what it means for borrowing, and the housing-only front-end ratio.
Worked example
$6,000 income, $2,300 of debt payments. Rent $1,500 + car $400 + student loan $250 + cards $150 = $2,300. DTI = $2,300 ÷ $6,000 × 100 = 38.3%, above 36% but within 43%. The housing-only ratio is $1,500 ÷ $6,000 = 25%. Paying off the car loan would bring the total down to $1,900, which is a DTI of 31.7% and well inside what most lenders like to see.
Features
Back-end and front-end ratios
See total DTI and the housing-only ratio lenders also check.
Plain-language result
Each result explains where you sit against the 36% and 43% marks lenders commonly use.
Private
Your income and debts stay in your browser and are never sent anywhere.
When to use it
Renting an apartment
Some landlords look at income and debts too. Knowing your DTI helps you choose a rent you can comfortably carry.
Before a mortgage application
Check your DTI first; paying off a car loan can bring it under a lender's limit.
Budget health check
A DTI above 40% means a large share of income is committed to debt every month.
Comparing a new loan
Add a planned car payment to see how it would change your DTI.
Frequently asked questions
How is debt-to-income ratio calculated?
Add up your monthly debt payments and divide by your gross monthly income, then multiply by 100. $2,300 of debt on $6,000 income is a DTI of 38.3%.
What is a good DTI?
Many lenders prefer 36% or less. The CFPB notes that 43% is generally the highest DTI for a Qualified Mortgage, though some loan programs allow more.
Which debts count?
Rent or mortgage, car loans, student loans, minimum credit card payments, personal loans and child support. Utilities, groceries and insurance usually do not.
Is income before or after tax?
Before tax. Lenders use gross monthly income, the amount before taxes and deductions.
How can I lower my DTI?
Pay down balances, avoid new debt before applying, or increase income. Paying off a small loan with a high monthly payment helps most.
Is DTI the same as credit utilization?
No. DTI compares monthly payments with income. Credit utilization compares card balances with credit limits and affects your credit score instead.
Do lenders count my partner's debts?
Only if they are on the application. On a joint mortgage, both incomes and both sets of debts are added together.
Does DTI affect my credit score?
No. Credit scores do not use your income, so DTI is not part of the score. Lenders calculate it separately when you apply, using the payments on your credit report and the income you declare. That is why two people with the same score can get different loan offers.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated