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Debt-to-income ratio calculator

Calculate monthly debt as a share of gross income.

  • Formula and assumptions shown
  • Table and CSV export
  • Runs in your browser

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Inputs

Results update as you type. Amounts in USD. Rates are your own assumptions.

Result

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Assumptions used

Calculated result—

Enter your numbers to see an estimate.

Notes and methodology

How it works

DTI is monthly debt payments divided by gross monthly income. This page shows the current ratio and the ratio after adding the proposed payment you enter.

Formula

DTI = total monthly debt payments ÷ gross monthly income × 100%.

Different products and lenders use different debt definitions and limits. The arithmetic is a planning comparison and does not predict approval.

Read the full methodology

Assumptions

  • Income is gross monthly income before deductions.
  • The debt field is the total of recurring monthly debt payments you choose to include.
  • The proposed payment is added to that total for the second ratio.
  • The result is a planning ratio and not an underwriting decision.

Worked example

$8,000 gross monthly income

With $1,800 in current monthly debt, current DTI is 22.5%. Adding a proposed $500 payment makes the ratio $2,300 ÷ $8,000 = 28.75%.

Step by step

  1. Add up current monthly debt payments. The example’s recurring debt payments total $1,800 a month. Balances are not used; only the monthly payments count.
  2. Divide by gross monthly income. $1,800 ÷ $8,000 = 0.225, a current DTI of 22.5%.
  3. Add the proposed payment. $1,800 + $500 = $2,300 of monthly debt after the proposed payment.
  4. Recalculate the ratio. $2,300 ÷ $8,000 = 0.2875, a proposed DTI of 28.75%. The new payment alone adds 6.25 percentage points ($500 ÷ $8,000).
  5. Measure the room under a limit. Against an illustrative 36% limit, total payments at this income could reach $8,000 × 36% = $2,880, leaving $580 a month of room after the proposed payment. Lenders set their own limits.

How to read your result

The headline is the proposed DTI: current debt payments plus the proposed payment, divided by gross monthly income. The secondary figures show the current DTI, the monthly debt total after the proposal, and the income used. The table repeats the two ratios side by side.

The ratio is only as meaningful as what goes into the debt field. Lenders commonly count recurring obligations such as a mortgage or rent payment where applicable, minimum credit card payments, auto, student, and personal loan payments, and court-ordered payments, but generally not utilities, groceries, or insurance. Mortgage lenders often compute two ratios: a front-end ratio with housing costs only and a back-end ratio with all debts including housing. Entering only the housing payment gives the first; entering everything gives the second.

Income is gross, before taxes and deductions, so a DTI can look comfortable while take-home pay is tight. The result does not predict approval: credit history, reserves, the loan program, and verified income all enter underwriting.

What changes the result most

Income
The same $2,300 of debt is 38.33% of a $6,000 monthly income and 23% of a $10,000 income, against 28.75% at $8,000.
Each monthly payment
At $8,000 of income, every $100 of monthly payment is 1.25 percentage points. Paying off a debt with a $300 payment would lower the current ratio from 22.5% to 18.75% and the proposed ratio from 28.75% to 25%.
Loan term on a new payment
DTI counts payments, not balances, so a longer term lowers the ratio while raising interest. The auto loan calculator’s $30,240 example costs $598.79 a month over 60 months and $515.56 over 72; the $83.23 difference is about 1.04 points of DTI at $8,000 of income, while the longer loan adds $1,193.17 of interest.

Questions

Should rent be included?

Use the inputs and definition shown by the calculator. Lenders and ratio types can treat housing costs differently, so do not assume one universal rule.

Does a low DTI guarantee approval?

No. Credit, income verification, reserves, collateral, product rules, and many other factors can matter.

Can I include a proposed new payment?

Yes. Enter it separately to see the current ratio and the ratio after that payment is added.

What is a good debt-to-income ratio?

There is no single cutoff; a lower ratio means less of gross income is committed to debt payments. Limits depend on the lender and loan program. For example, Fannie Mae’s guidelines for conventional mortgages set a 36% maximum for manually underwritten loans, which can be exceeded up to 45% when credit score and reserve requirements are met, and allow up to 50% for loans underwritten through its automated system. Other lenders and loan types use different limits.

What is the difference between front-end and back-end DTI?

Front-end DTI divides housing costs alone (the mortgage payment with property tax, insurance, and any HOA or mortgage insurance) by gross monthly income. Back-end DTI adds every other recurring debt payment. Back-end is the broader measure, and it is the one this calculator produces when all debt payments are entered.

Does my debt-to-income ratio affect my credit score?

Not directly. Credit reports do not include income, so standard credit scores cannot calculate DTI. Balances and payment history do appear in credit reports, and lenders review DTI separately when deciding on an application.

More in Loans & debt

Sources

These references explain the concepts behind the calculation. They do not endorse this site. Estimates leave out any cost or condition you did not enter.