Monthly Debt Payment Calculator
Every mortgage, car-loan and affordability calculator asks for your “monthly debts” — and most people just guess. Add up the payments lenders actually count below, then carry the exact total into your other calculations.
Add up your monthly payments
Enter the minimum monthly payment for each debt you have. Skip the ones that don’t apply — and leave out rent, utilities and everyday bills (lenders don’t count those).
Carry this total into your next decision
Your number is filled in automatically — no retyping.
Where your monthly debt goes
Your total non-housing debt, split by type.
What lenders count as “monthly debt”
When you apply for a mortgage, car loan or personal loan, the lender adds up your recurring debt payments to work out your debt-to-income ratio. The confusing part is that “debt” has a specific meaning here — it’s money you owe on borrowed funds, not your cost of living. Getting the list right is the difference between an accurate pre-approval estimate and an unpleasant surprise.
Counted as debt
- Auto loans and leases — the full monthly payment.
- Student loans — your monthly payment (lenders may estimate one even if you’re in deferment).
- Credit cards — the minimum payment, not the balance.
- Personal and installment loans — including medical payment plans and financed purchases.
- Child support and alimony — court-ordered obligations count.
Not counted
Lenders ignore your everyday living expenses, because they assume everyone has them: rent paid as a tenant is the one debt-like item handled separately, and utilities, groceries, gas, phone bills, insurance premiums, childcare and streaming subscriptions are left out entirely. If you’ve been padding your “monthly debts” with your electric bill, your real number is probably lower than you think.
The math & how we calculate it
It’s a simple sum — but the value is in knowing exactly which payments belong in it. We total your non-housing debts as the headline figure (the number loan calculators ask for), then add your rent or current mortgage separately to show the housing-included total that matches the “back-end” view of your debt-to-income ratio.
Worked example: A $400 car payment, $250 in student loans and a $150 credit-card minimum add up to $800/month in debt. With $1,800 rent, the housing-included total is $2,600 — but it’s the $800 you’d enter as your “monthly debts” when you apply for a new mortgage.
How your monthly debt changes what you can borrow
- It’s subtracted from your borrowing cap. Most lenders use the 28/36 rule — total debt under 36% of gross income. Every dollar of existing debt is one less dollar available for a new loan payment.
- Paying off a small loan can unlock a bigger one. Clearing a $400 car payment before you apply can raise your home budget by tens of thousands of dollars.
- Minimum payments matter more than balances. A large balance with a small minimum payment hurts your ratio less than a small balance with a steep payment.
- A little debt may not hurt at all. Because the 28% housing limit usually binds before the 36% total-debt limit, modest debts sometimes don’t lower your home budget — see the house-you-can-afford-by-salary breakdown.
Glossary
- Debt-to-income (DTI) ratio
- Your total monthly debt payments divided by your gross monthly income, shown as a percentage. The key number lenders use to size a loan.
- Minimum payment
- The smallest amount you can pay on a credit card each month without penalty. Lenders use this figure, not your balance.
- Back-end ratio
- The version of DTI that includes your housing payment along with all other debts — the “including housing” total here.
- Front-end ratio
- DTI counting housing costs only. Lenders often cap this near 28% of gross income.
Frequently asked questions
What counts as monthly debt for a loan application?
Lenders count recurring debt payments: auto loans and leases, student loans, the minimum payments on your credit cards, personal loans, other installment loans, and court-ordered payments like child support or alimony. They do not count everyday living expenses such as utilities, groceries, phone bills, insurance premiums or streaming subscriptions.
Does monthly debt include my rent or mortgage?
For your debt-to-income ratio, housing is counted — but separately. When you apply for a new mortgage, lenders look at your other (non-housing) debts, because the new mortgage payment replaces your current rent. That’s why this calculator totals your non-housing debts as the main figure and shows the housing-included total beneath it.
Do I use the minimum payment or the full balance for credit cards?
Use the minimum monthly payment, not the balance. Debt-to-income is about monthly cash flow, so lenders use the minimum payment shown on your statement — even though paying only the minimum is expensive over time.
Why does my monthly debt matter when buying a home or car?
Lenders cap how much of your income can go to debt — commonly 36% of gross income for all debts under the 28/36 rule. Your existing monthly debt is subtracted from that cap, so the higher it is, the smaller the loan you qualify for. Paying down a debt before applying can directly raise how much you can borrow.
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