⚖️ Debt-to-Income Calculator
Calculate your debt-to-income ratio and see how it compares with the 36% and 43% limits mortgage and loan lenders use.
Quick answer: DTI = total monthly debt payments ÷ gross monthly income × 100. Paying $2,100 a month in debts ($1,400 housing, $350 car, $200 student loan, $150 cards) on $6,000 of monthly income gives a DTI of 35.0% – inside the 36% guideline.
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Debt-to-Income Calculator inputs
Result
Debt-to-income ratio
35%
Good – within the 36% guideline
| Rent or mortgage | $1,400.00 |
| Car loans | $350.00 |
| Student loans | $200.00 |
| Credit card minimums | $150.00 |
| Total monthly debts | $2,100.00 |
| Gross monthly income | $6,000.00 |
- Housing ratio (front-end)
- 23.3%
- Room before 36%
- $60.00
- Room before 43%
- $480.00
How to calculate your debt-to-income ratio
Add up every required monthly debt payment and divide by your gross (pre-tax) monthly income. Lenders use the result to judge how much more borrowing you can safely take on.
DTI = Total monthly debt payments ÷ Gross monthly income × 100%
Lenders also look at the front-end ratio – housing costs alone divided by income – which ideally stays under 28%.
Worked example
You earn $6,000 a month before tax and pay $1,400 in rent, $350 for a car, $200 on a student loan and $150 in card minimums. Total debts are $2,100, so DTI = 2,100 ÷ 6,000 = 35.0%. Your front-end ratio is 23.3%, and you have $60 of room before reaching 36%.
How lenders read DTI
| DTI | What it usually means |
|---|---|
| 36% or less | Good – comfortable for most lenders |
| 37–43% | Manageable – common ceiling for qualified mortgages |
| 44–50% | High – only some loan programs accept it |
| Over 50% | Very high – borrowing is difficult; prioritise paying down debt |
Tips before applying for a loan
- Use the payment shown on your statements, not the balance – DTI is about monthly obligations.
- Include the new mortgage payment (with taxes and insurance) to see your DTI after buying.
- Don't open new credit cards or finance a car in the months before a mortgage application.
- Paying a card down to zero removes its minimum payment from the calculation.
DTI is only one part of a loan decision: lenders also weigh your credit score, savings and job history.
Estimates for educational purposes, not financial advice.
Frequently asked questions
What is a good debt-to-income ratio?
Under 36% is generally considered healthy, with no more than 28% going to housing. Many conventional mortgages allow up to 43–45%, and some FHA loans go higher with strong credit or savings.
What counts as debt in DTI?
Recurring minimum payments that appear on your credit report or are court-ordered: rent or mortgage (with tax and insurance), car loans, student loans, credit card minimums, personal loans, child support and alimony.
What is not included in DTI?
Everyday living costs such as utilities, groceries, phone bills, insurance premiums (other than in the mortgage payment), subscriptions and taxes are not counted.
How can I lower my DTI?
Pay down or pay off loans with small remaining balances, avoid new debt before applying for a mortgage, or increase your income. Paying off a $350 car loan cuts the DTI of someone earning $6,000 a month by almost 6 points.