Debt to Income Ratio Calculator
Calculate your debt to income ratio and understand how your monthly debt obligations compare with your gross monthly income.
Enter Your Financial Information
Enter your gross monthly income and recurring monthly debt payments to calculate your debt to income ratio.
Income
Gross monthly incomeMonthly Debt Payments
Recurring obligationsYour Debt to Income Ratio
Based on the information you entered
DTI Insight
Enter your income and debt payments to see how much of your gross monthly income is committed to debt.
About the Debt to Income Ratio Calculator
The debt to income ratio, commonly called DTI, compares your recurring monthly debt payments with your gross monthly income. It is commonly used as one measure of a borrower’s debt burden.
This calculator lets you enter major categories of monthly debt including housing payments, auto loans, student loans, credit card payments, personal loans and other recurring debt.
The result is expressed as a percentage. A higher percentage means a larger portion of gross monthly income is committed to recurring debt payments.
DTI is only one part of a financial or lending assessment. Different lenders and loan programs can use different definitions, limits and underwriting requirements.
How to Use the Calculator
Enter Income
Enter your gross monthly income before taxes and other payroll deductions.
Add Debt
Enter the monthly payment for each recurring debt category.
Review DTI
The calculator combines your debt payments and compares them with your gross monthly income.
How DTI Is Calculated
The calculator adds your recurring monthly debt payments and divides the total by your gross monthly income.
If your gross monthly income is $7,500 and your qualifying monthly debt payments total $2,250, your DTI would be 30%.
The calculator uses the monthly payment amounts you enter rather than outstanding loan balances.
Understanding DTI Ratios
DTI percentages are often used to describe the relative size of a person’s recurring debt obligations compared with income.
| DTI Range | General Interpretation |
|---|---|
| Below 20% | Relatively low monthly debt burden |
| 20% to 35% | Moderate debt burden |
| 36% to 43% | Higher debt burden that may receive additional attention during lending decisions |
| Above 43% | Relatively high debt burden |
These ranges are general educational reference points and are not universal approval thresholds. Actual lender requirements can vary by loan type, lender and borrower circumstances.
Front End vs. Back End DTI
Housing DTI
A housing ratio focuses on housing related expenses relative to gross income. Depending on the lending context, the calculation can include different housing costs.
Total DTI
Total DTI considers housing and other qualifying recurring debt obligations relative to gross income.
Why DTI Matters
DTI provides a simple way to understand how much of your gross monthly income is already committed to recurring debt payments.
A lower DTI generally means more of your gross income remains after the listed debt payments have been accounted for.
However, DTI does not measure every aspect of financial health. Savings, assets, emergency funds, credit history, taxes, insurance and everyday living expenses are not captured by the basic ratio.
DTI and Mortgage Applications
Mortgage lenders can use debt to income measurements when evaluating a borrower’s ability to handle monthly obligations. The specific calculation and qualifying limits can differ based on the mortgage program and lender.
A DTI calculator should therefore be used as a planning tool rather than as a prediction of mortgage approval.
If you are preparing to purchase a home, it can be useful to examine your DTI alongside your credit profile, available cash, down payment, estimated housing costs and emergency savings.
What Can Lower Your DTI?
There are two basic ways the ratio can change. Monthly debt payments can decrease, or gross income can increase.
- Paying down or eliminating recurring debt payments can reduce monthly obligations.
- Refinancing may change a monthly payment, although the overall financial effect depends on the loan terms and costs involved.
- Increasing income can reduce the ratio when monthly debt payments remain unchanged.
- Avoiding additional recurring debt payments can help prevent the monthly debt burden from increasing.
This calculator is provided for educational and informational purposes only. It is not financial advice, credit advice, mortgage approval, loan approval or a guarantee of eligibility. Actual DTI calculations may differ because lenders can use different definitions of income, debt and qualifying payments.