Debt-to-Income Ratio Calculator
Calculate your DTI ratio — the percentage of gross monthly income going toward debt payments. Lenders use DTI to evaluate mortgage and loan applications.
🏦 Lending💰 DTI = Monthly Debt Payments / Gross Income × 100
Gross monthly income ($)
Monthly mortgage or rent ($)
Monthly car payments ($)
Monthly student loans ($)
Other monthly debt payments ($)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Debt-to-Income Ratio Calculator | DTI = Monthly Debt Payments / Gross Income × 100 | % |
Step-by-Step Examples
Example 1
Good DTI
$6k income: $1,400 mortgage, $300 car, $200 student.
- Total debt: $1,900
- Back-end DTI: 31.7%
- Well within conventional preferred range
✓ DTI 31.7% — strong candidate
Example 2
Borderline
$5,500 income: $1,500 mortgage, $450 car, $350 student, $200 other.
- Total: $2,500
- DTI: 45.5% — above 43% conventional limit
- Paying off $350 student loan drops to 39%
✓ DTI 45.5% — borderline
Example 3
Too High
$4k income: $1,200 rent, $400 car, $500 student.
- Total: $2,100
- DTI: 52.5% — too high for most lenders
- Need to reduce debt or increase income first
✓ DTI 52.5% — needs work
Real-World Applications
Mortgage Qualification
Often the primary reason applications are approved or denied.
Loan Applications
Auto and personal loans also consider DTI.
Financial Health
Reveals whether debt load is sustainable relative to income.
Home Buying
Know your price range before house hunting.
Common Mistakes to Avoid
⚠️
Including non-debt expenses
Only count debt payments — not groceries, utilities, or subscriptions.
⚠️
Using net instead of gross income
DTI calculations always use gross (pre-tax) income.
⚠️
Forgetting credit card minimums
Minimums count in DTI even if you pay cards off monthly.
Frequently Asked Questions
What DTI do lenders want? ▾
Front-end under 28–31%. Back-end under 36% conventional, up to 43% FHA, 50% with compensating factors.
Front-end vs back-end DTI? ▾
Front-end: housing ÷ gross income. Back-end: all debt ÷ gross income.
Does DTI affect interest rate? ▾
Indirectly — primarily affects approval; credit score has more direct rate impact.
Quickest ways to improve DTI? ▾
Pay off smaller debts entirely, increase income, or delay purchases before applying.
Does rent count in DTI? ▾
Yes if keeping rental while buying. If replacing rent with mortgage, only the mortgage counts.