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Debt-to-Income (DTI) Ratio Calculator
Your debt-to-income ratio shows how much of your gross income goes to debt payments each month. Enter your income, housing cost and other payments to see both common versions and the room left under a limit.
The two ratios
Debt-to-income expresses recurring debt payments as a share of gross monthly income. Two versions are common.
- Front-end (housing) ratio:
Housing payment ÷ Gross monthly income × 100. - Back-end (total) ratio:
(Housing + all other debt payments) ÷ Gross monthly income × 100.
If you enter yearly income the calculator divides it by twelve first. Only required minimum payments belong in the debt figures. Voluntary extra payments, grocery bills, utilities, phone and insurance premiums are not debts for this purpose.
Why the comparison limits are editable
People often quote 28% for the housing ratio and 36% for the total ratio, but they are guidelines. Lenders and programmes apply different limits, and some accept higher total ratios when other parts of an application are strong. The limit fields above start at those familiar figures and can be changed to match what your lender states. The room-left rows turn a ratio into money: they show how much more monthly debt you could take on before reaching the limit, or how much you would need to cut.
Ways to lower your ratio
- Pay off or pay down a debt with a high payment relative to its balance, such as a car loan close to its end.
- Avoid new borrowing before applying for a mortgage or other large loan.
- Increase income that a lender will count, which usually means documented and stable income.
- Choose a lower housing cost or a longer term, remembering that a longer term raises total interest.
The debt payoff calculator helps you plan which debt to clear first, and the house affordability calculator turns the ratios into a maximum home price.
What DTI does not show
The ratio ignores taxes, so two people with the same gross income and the same DTI can have different take-home pay. It says nothing about savings, credit history or job stability. Treat the result as a way to understand your own position and to see how a lender may view an application.
Worked example: with 6,000 of gross income a month, a 1,500 housing payment and 600 of other debts, the front-end ratio is 25% and the back-end ratio is 35%. Taking on a new 150 monthly payment lifts the back-end figure to 37.5%, which is above a 36% limit, even though nothing about the income changed. Running scenarios like this before you apply for new credit shows which purchases stay inside a limit and which do not. Keep in mind that lenders may count the full payment on a new loan even if you plan to pay it off early, so use the scheduled amount when testing a purchase.
Worked example
A household earning 84,000 a year with a 1,900 housing payment, a 420 car payment, 310 of student loans and 150 of card minimums.
Inputs
| Gross income (before tax) | 84000 |
|---|---|
| The income above is | Per year |
| Housing payment per month | 1900 |
| Car loan or lease payments per month | 420 |
| Student loan payments per month | 310 |
| Credit card minimum payments per month | 150 |
| Other required debt payments per month | 0 |
| Housing ratio limit to compare against | 28 % |
| Total debt ratio limit to compare against | 36 % |
Result
Above the total-debt limit. Housing ratio 27.1%.
| Gross monthly income | 7,000.00 |
|---|---|
| Housing payment | 1,900.00 |
| Other debt payments | 880.00 |
| Total monthly debt payments | 2,780.00 |
| Front-end ratio (housing only) | 27.14% |
| Back-end ratio (all debts) | 39.71% |
| Reduction needed to meet the total limit | 260.00 |
| Extra housing cost allowed under the housing limit | 60.00 |
- Gross income means before tax and deductions. Everyday costs such as food, utilities and insurance are not debt payments and are left out of DTI.
Financial disclaimer: Results are estimates for planning and education. They are not financial, tax or legal advice. Fees, taxes, rates and rules vary by lender, product and country, so confirm figures with your provider or a qualified adviser before making decisions.
Frequently asked questions
How do I calculate my debt-to-income ratio?
Add up your monthly debt payments and divide by your gross monthly income, then multiply by 100. The housing-only version divides just the housing payment.
What counts as debt in DTI?
Housing payments, car payments, student loans, minimum card payments and other required loan payments. Living costs like food and utilities are not included.
Is DTI based on gross or net income?
Gross, meaning before tax and deductions. That makes the ratio look lower than it feels from take-home pay.
What is a good debt-to-income ratio?
Lower is better. Many lenders use figures around the mid-thirties for the total ratio as a guide, but limits vary and you can enter your own.
Does rent count as debt?
Rent is a housing cost and is usually included in the housing payment field when you want to compare it with a limit.
Related calculators
References and sources
- Consumer Financial Protection Bureau: educational material on debt-to-income ratios and mortgage qualification. Link
- Front-end and back-end ratios as described in standard consumer lending guides.