Debt-to-Income Ratio Calculator

DTI — monthly debt payments divided by gross monthly income — is one of the first numbers a mortgage lender checks. Enter your income and each monthly debt to see your back-end DTI and your housing (front-end) ratio, with a plain-English reading.

Before taxes — lenders use gross income
Rent, or mortgage principal + interest + tax + insurance

Results

Assumptions: Uses gross monthly income and minimum required payments, matching standard lender methodology. Individual lenders may count debts differently.

Formula

Lenders use gross (pre-tax) income and required minimum payments:
DTI = Total monthly debt payments ÷ Gross monthly income × 100

How to use this calculator

  1. Enter your gross monthly income (before tax).
  2. Enter each monthly debt payment — for credit cards, use the minimum payment, as lenders do.
  3. Press Calculate for your DTI and housing ratio.
Debt-to-Income Ratio Calculator — how the calculation works, illustrated
Debt-to-Income Ratio Calculator — how the calculation works, illustrated

Worked example

Gross income $6,000; housing $1,500; car $400; card minimums $100.

  1. Total debts: 1,500 + 400 + 100 = $2,000.
  2. DTI: 2,000 ÷ 6,000 ≈ 33.3%.
  3. Housing ratio: 1,500 ÷ 6,000 = 25%.

Result: A DTI of about 33% — inside the range most lenders consider comfortable.

Frequently asked questions

What DTI do mortgage lenders want?

Guidelines vary by program, but 36% or below is traditionally comfortable, many programs allow up to about 43–45%, and some go higher with strong compensating factors. The result panel gives a plain reading for your number.

Do utilities and groceries count as debts?

No. Lenders count obligations that appear as recurring debts: housing, auto loans, student loans, credit-card minimums, child support and similar. Everyday living expenses are excluded.

What is the fastest way to lower DTI?

Paying off a small loan entirely removes its whole payment from the ratio. Reducing a credit-card balance helps only insofar as it lowers the minimum payment.

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