About the Debt-to-Income Ratio Calculator
This debt-to-income (DTI) calculator works out the two ratios lenders use to judge whether you can take on a new loan. Your back-end DTI is all monthly debt payments — housing, car, student loans, card minimums and other obligations — divided by your gross (pre-tax) monthly income. Your front-end DTI, or housing ratio, counts only the housing payment.
It is useful before applying for a mortgage, auto loan or personal loan, or when deciding whether you can afford a new payment. As a rule of thumb, many lenders look for a back-end DTI of 36% or less and housing under 28%, while qualified mortgages have historically been capped around 43%; some loan programs allow more with strong credit or reserves.
Enter monthly payments as they appear on your credit report and loan statements, not living expenses such as groceries, utilities or insurance (unless they are part of your housing payment). The calculator also shows the most you could spend on debt at 36% and 43% of income.
With the default inputs, the debt-to-income ratio (back-end) is 38.6%. Change any value above to recalculate instantly.
How to use the debt-to-income ratio calculator
- 1Enter your gross monthly income (annual salary ÷ 12).
- 2Enter your rent or full mortgage payment including tax, insurance and HOA.
- 3Add car, student loan, credit card minimum and any other debt payments.
- 4Read your back-end and front-end DTI and the assessment.
- 5Use the 36% and 43% limits to see how much room you have for a new loan.
Formula and method
Both ratios use gross income — what you earn before taxes and deductions. The back-end ratio adds every recurring debt payment that appears on a credit report or court order (housing, car, student loan and personal loan payments, card minimums, child support and alimony) and divides by that income. The front-end ratio uses only your full housing payment, including property tax, insurance and HOA dues.
The 28%, 36% and 43% figures are widely used guidelines rather than hard rules; actual limits depend on the loan type, your credit score and cash reserves. Everyday expenses like food, utilities and phone bills are not part of DTI.
- Back-end DTI
- All monthly debt payments as a share of gross income
- Front-end DTI
- Housing payment as a share of gross income
- Gross income
- Monthly income before taxes and deductions
Worked examples
$7,000 a month with $2,700 of debt payments
Monthly debts of $1,800 + $450 + $300 + $150 = $2,700 divided by $7,000 give a back-end DTI of 38.6%, while housing alone is 25.7%. That is $180 above the 36% guideline but within the 43% level many mortgage lenders accept.
Renter with a student loan
Payments of $1,735 on $5,500 of gross income give a DTI of 31.5%, and rent is 25.5% of income. There is about $245 a month of room before reaching 36%.
Higher earner with a large mortgage
With $4,450 of monthly debt on $12,000 of income the DTI is 37.1%, slightly above 36%. The housing ratio is a comfortable 26.7%, and the 43% limit would allow up to $5,160 of payments.
Frequently asked questions
What is a good debt-to-income ratio?+
Many lenders consider 36% or less a healthy back-end DTI, with no more than 28% going to housing. Ratios up to about 43% are often still acceptable for mortgages, and some programs go higher for borrowers with strong credit.
What counts as debt in a DTI calculation?+
Recurring debt payments: rent or mortgage (with tax, insurance and HOA), auto loans, student loans, personal loans, minimum credit card payments, child support and alimony. Utilities, groceries, phone bills and insurance premiums outside your mortgage are not included.
Is DTI based on gross or net income?+
Gross income — your pay before taxes and deductions. Using gross income makes DTI look lower than the share of your take-home pay that goes to debt, so budget with net income too.
What DTI do I need for a mortgage?+
Guidelines vary by loan type. The CFPB’s original qualified-mortgage rule used a 43% cap, and conventional, FHA and VA programs can allow more with compensating factors such as reserves and a high credit score.
How can I lower my DTI quickly?+
Pay off small balances entirely (which removes the payment), pay down card balances to lower minimums, avoid new loans, or add verifiable income such as a co-borrower. Refinancing to a longer term also lowers the payment, but can raise total interest.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.