Debt-to-Income Ratio Calculator
If you earn $6,000 a month and pay $1,800 toward debts, your DTI is 30%, which most lenders consider healthy (under 36%). Enter your gross monthly income and total monthly debt payments to see your debt-to-income ratio and how lenders are likely to view it. DTI is one of the main numbers lenders check when you apply for a mortgage or other loan.
Quick answer
DTI is your total monthly debt payments divided by your gross monthly income, shown as a percent.
What this tells you
- •DTI is your total monthly debt payments divided by your gross monthly income, shown as a percent.
- •Lower is better: under 36% is generally healthy, while over 43% makes many loans harder to get.
- •Lenders use DTI alongside credit score and income stability to decide how much you can borrow.
How to Use
- 1Enter your gross monthly income before taxes and deductions.
- 2Add up your recurring monthly debt payments such as rent or mortgage, car loans, student loans, and credit card minimums.
- 3Enter that total in the monthly debt payments field.
- 4Click Calculate to see your DTI percentage and lender rating.
How It Works
Formula
DTI = (Total Monthly Debt Payments / Gross Monthly Income) x 100Add up every recurring monthly debt payment, then divide by your gross monthly income, the amount you earn before taxes. Multiply by 100 to express it as a percentage. A result of 30% means 30 cents of every dollar you earn already goes to debt.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
$6,000 income with $1,800 in debt payments
Divide $1,800 by $6,000 to get 0.30, then multiply by 100 for a 30% DTI. That is under the 36% threshold, so most lenders consider it healthy and you are likely to qualify for common loans.
$3,000 income with $1,800 in debt payments
Dividing $1,800 by $3,000 gives 0.60, or a 60% DTI. That is over the 50% mark, so it is rated very high and most lenders would decline new credit until the ratio comes down.
What Lenders Think of Your DTI
| DTI Range | Rating | What It Means |
|---|---|---|
| Under 36% | Healthy | Most loans qualify |
| 36-43% | Manageable | Still common |
| 43-50% | High | Harder to qualify |
| Over 50% | Very high | Few options |
These ranges are general guidelines. Specific loan programs and lenders set their own limits, and strong credit or reserves can stretch them.
Front-End vs Back-End DTI
Lenders look at two versions of your debt-to-income ratio. The front-end ratio counts only your housing payment, including principal, interest, taxes, and insurance, against your gross income. The back-end ratio counts all of your monthly debt, including housing plus car loans, student loans, and credit card minimums. The back-end number is the one most people mean when they say DTI, and it is what this calculator measures when you enter your total debt payments.
Mortgage lenders usually weigh the back-end ratio most heavily because it shows your full obligation load. Many conventional loans look for a back-end DTI at or below 43%, though some programs allow more with compensating factors like a high credit score or large cash reserves. Keeping both ratios low gives you the most room to qualify and the best rates.
To lower your DTI, you can pay down balances, avoid taking on new loans before applying, or increase your documented income. Even small reductions in monthly payments can move you from one rating band to the next, which can be the difference between an approval and a decline.
Common mistakes
- Using net pay instead of gross income, which inflates the ratio
- Counting only some debts and leaving out credit card minimums or student loans
- Including monthly bills like utilities or groceries, which are not part of DTI
- Treating the result as a guaranteed approval rather than one factor lenders weigh
Limitations
This calculator measures your back-end DTI from the total debt figure you enter, so it is only as accurate as that total. Lenders define debt differently, and some exclude items this tool would include or add ones it does not, such as alimony or co-signed loans. It does not account for credit score, income stability, loan type, or compensating factors, all of which affect a real lending decision.