Debt-to-Income Calculator
Your debt-to-income (DTI) ratio is one of the most important numbers lenders use to evaluate your loan applications. Enter your monthly debts and income to see your current DTI and whether you have room for additional borrowing.
Debt-to-income (DTI) ratio is the single most important number lenders use to decide whether to approve you for a mortgage, auto loan, or major credit application. It's the percentage of your gross monthly income that already goes to recurring debt payments. The lower the number, the more borrowing capacity you have — and the better your financial flexibility regardless of borrowing plans.
This calculator computes your front-end DTI (housing only) and back-end DTI (all debt) — the two numbers lenders quote. It also lets you add a proposed new payment to see how a future loan affects your ratios.
The conventional cutoffs: - **28/36 rule** (conservative): housing ≤28%, total debt ≤36% - **43% maximum** for Qualified Mortgages under CFPB rules - **45–50%** stretches available with strong compensating factors (excellent credit, large reserves)
Being technically approvable at 43% doesn't mean you should borrow that much. DTI captures debt obligations but not lifestyle expenses, savings goals, or quality of life.
Inputs
New loan or debt you are considering
Results
Current DTI
38.3%
Rating
Fair
Remaining Capacity
$0.00
Monthly Debt Breakdown
Income vs Debt
Formula
How to use this calculator
- Enter gross monthly income — pre-tax, including base salary plus reliable bonus/commission. Lenders typically average bonus income over 2+ years.
- Enter housing payment. For renters: monthly rent. For owners: mortgage PITI (principal + interest + taxes + insurance).
- Enter all other monthly debt obligations: car loans, student loans, minimum credit card payments, child support, alimony, personal loans.
- DO NOT include utilities, groceries, gas, insurance premiums (other than home/auto rolled into PITI), retirement contributions, or other non-debt expenses.
- If considering a new loan, enter the projected new payment to see future DTI.
- Compare to lender thresholds. Below 36% gives broadest access; under 28% is comfortably low.
Worked examples
Comfortable DTI
Income $7K/mo. Rent $1,800, car $300, student loans $250. Total debt: $2,350 Front DTI: 26%, Back DTI: 34% Both inside the conservative 28/36 thresholds. Maximum mortgage approval would substantially exceed current rent — but the household has good flexibility and savings room.
Stretched
Income $5,500/mo. Mortgage $1,650, car $450, student loans $400, CC mins $150. Total debt: $2,650 Front DTI: 30%, Back DTI: 48% Above the standard QM 43% cap. Refinancing the car or paying down student loans would bring DTI back into range. Many lenders won't approve at 48% without strong compensating factors.
When to use this calculator
Use this calculator before any major credit application (mortgage, auto, refi, large personal loan) to see whether you'll qualify and at what terms. Also use it as a periodic financial-health check.
To improve DTI quickly: - Pay off the smallest debt to remove a monthly payment - Refinance a high-payment loan to a longer term (lower monthly, even at same rate) - Add a creditworthy co-borrower (combines incomes) - Increase income (raise, side hustle, bonus history) - Wait — paying down balances over time naturally lowers monthly minimums
For pre-mortgage planning specifically, use the home affordability calculator, which derives the maximum home price your DTI supports.
Common mistakes to avoid
- Including utilities, groceries, insurance, or other non-debt expenses. Only recurring debt payments count.
- Using net income instead of gross. Lenders use gross.
- Forgetting credit card minimums. Even if you pay in full, the minimum is what counts for DTI.
- Including 401(k) contributions or other deductions. DTI uses gross income.
- Treating the lender's maximum as a target. Maximum is the risk ceiling, not a wise financial level.
- Forgetting that lenders see your full debt picture. They'll pull credit and see anything you "forget."
- Ignoring DTI when no loan is pending. A high DTI signals over-extension even without a new loan.
Frequently Asked Questions
Sources & further reading
- Understanding debt-to-income — U.S. Consumer Financial Protection Bureau
- Qualified Mortgage rule — U.S. Consumer Financial Protection Bureau