Debt-to-Income (DTI) Ratio Calculator
Your debt-to-income ratio is the number lenders care about most when deciding whether to approve you. Enter your monthly income and debt payments to see your DTI, how a lender would read it, and how much room you have left.
Your monthly numbers
Use gross (pre-tax) income and your required monthly debt payments. Leave anything that doesn't apply at 0.
Where your income goes
The share of your gross income committed to debt versus what's left.
How debt-to-income works
Your debt-to-income ratio (DTI) is simply the share of your gross monthly income that goes to required debt payments. Lenders lean on it heavily because it answers the question they care about most: can you comfortably take on another payment? A lower DTI means more breathing room and a stronger application.
There are two versions. The front-end ratio counts just your housing payment against your income; the back-end ratio counts all your debts (housing plus loans and cards). When people say "DTI," they usually mean the back-end ratio — and that's the headline number above.
The classic benchmark is the 28/36 rule: keep housing under 28% of gross income and total debts under 36%. Many lenders will go higher — often up to 43%, and sometimes ~50% for certain loan programs — but the further past 36% you go, the tighter your options and the more "house poor" you risk becoming.
The formula
Worked example (the defaults above):
- Debts: $1,800 housing + $400 car + $250 student + $150 cards = $2,600/month.
- Gross income: $7,500/month.
- DTI = $2,600 ÷ $7,500 × 100 = 34.7% — under 36%, so a lender would view it as healthy.
- Front-end (housing only) = $1,800 ÷ $7,500 = 24%.
How to lower your DTI
- Pay down debt. Knocking out even one small loan or card balance removes its whole monthly payment from the top of the ratio.
- Don't open new credit before applying. A new car loan right before a mortgage application can sink your DTI at the worst time.
- Raise your income. A raise, side income or adding a co-borrower's income lowers the ratio from the bottom.
- Refinance or restructure. A lower rate or longer term reduces a monthly payment (though watch the total interest trade-off).
Buying a home? Run the other side of this with the home affordability calculator and the mortgage calculator.
Glossary
- DTI (Debt-to-Income ratio)
- Total monthly debt payments divided by gross monthly income, as a percentage.
- Front-end ratio
- Housing payment ÷ gross income — the 28% in the 28/36 rule.
- Back-end ratio
- All debt payments ÷ gross income — the 36% in the 28/36 rule, and what "DTI" usually means.
- Gross income
- Income before taxes and deductions — the figure lenders use for DTI.
- 28/36 rule
- A common guideline: housing under 28% of gross income, all debts under 36%.
Frequently asked questions
How do I calculate my debt-to-income ratio?
Add up your monthly debt payments (housing, car, student loans, card minimums, other debts), divide by your gross monthly income, and multiply by 100. For example, $2,600 of debt on $7,500 income is about 34.7%.
What is a good debt-to-income ratio?
Lower is better. Under 36% is healthy, up to about 43% is accepted by many lenders, and above 43% is risky. The 28/36 rule keeps housing under 28% and total debt under 36%.
What's the difference between front-end and back-end DTI?
Front-end counts only your housing payment against income; back-end counts all debts including housing. "DTI" usually means the back-end (total) ratio, though mortgage lenders look at both.
What debts count toward DTI?
Recurring debt obligations: rent/mortgage, car and student loans, minimum card payments, personal loans, and required payments like child support. Everyday costs like groceries, utilities and insurance generally don't count.
How can I lower my DTI?
Pay down debts (especially small ones you can clear entirely), avoid new loans before applying for credit, and raise your gross income. Clearing a single loan can drop your DTI by several points.
Does DTI affect my credit score?
Not directly — credit scores don't know your income. But credit utilization (a related measure) does affect your score, and lenders use DTI alongside your score when deciding whether to approve a loan.
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