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Debt-to-Income (DTI) Ratio Calculator

Calculate your DTI ratio for mortgage and loan qualification. Free US DTI calculator with lender thresholds.

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What This Calculator Tells You

Your debt-to-income (DTI) ratio is the share of your gross monthly income that goes to debt payments. US lenders use it, alongside your credit score, to decide whether you can afford a new mortgage, car loan or personal loan.

Enter your total monthly debt payments and gross monthly income. The calculator shows your DTI and how a typical lender is likely to view it.

What to Enter

Total monthly debt payments ($) — minimum required payments on everything you owe: rent or mortgage (including taxes and insurance), car loans, student loans, credit-card minimums, personal loans, child support or alimony. Do not include utilities, groceries, phone or insurance premiums.
Gross monthly income ($) — income before taxes and deductions. If you are salaried, divide annual salary by 12. Self-employed borrowers usually use average net business income from tax returns.

Worked Examples

1. A renter applying for a car loan

Rent $1,600, student loan $300, credit-card minimums $250 → $2,150 a month. Salary $78,000 a year ($6,500 a month).

Enter 2,150 and 6,500 → DTI 33.1%, shown as Healthy.

2. The same person adds a $750 car payment

Debts rise to $2,900 a month.

DTI 44.6% → High. Many conventional mortgage lenders would now decline or require strong compensating factors.

3. A first-time home buyer

Proposed mortgage payment (PITI) $1,500 plus a $350 car loan = $1,850; income $4,200 a month.

DTI 44.0%. Paying off the car loan first would bring it to about 35.7%.

How It’s Calculated

Back-end DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100.

DTI: Debt-to-Income ratio

How to Read Your Result

Below 36% — generally seen as healthy, with room for new credit.
36–43% — acceptable for many lenders; 43% is a common ceiling for qualified mortgages.
Above 43% — high. Some loan programs allow up to around 50% with strong credit and reserves, but terms are usually worse.
Front-end vs back-end: mortgage lenders also look at housing costs alone (front-end DTI), often preferring under 28%.

Common Mistakes to Avoid

Using take-home pay instead of gross income — this makes DTI look worse than lenders calculate it.
Including living expenses like groceries or utilities, which lenders do not count.
Using the full credit-card balance instead of the minimum payment.
Forgetting co-signed loans, which usually count against you.

Built and maintained by GenAlpha Tools Editorial. Uses the standard published formula shown above. How we calculate · Report an error

When to Use This Calculator

Check whether you are likely to qualify before applying for a mortgage.
See how paying off one debt changes your borrowing power.
Decide how big a new car or loan payment you can comfortably take on.
Track financial health over time as income and debts change.

Frequently Asked Questions

How is DTI calculated?

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

What DTI do I need for a mortgage?

Many conventional lenders prefer 36% or lower and cap around 43–45%; FHA and some programs can go higher with compensating factors. Rules change, so confirm with your lender.

Does rent count in DTI?

Yes when you are not buying — current housing cost is part of your obligations. When you apply for a mortgage, the new mortgage payment replaces rent in the calculation.

How can I lower my DTI quickly?

Pay down or pay off a loan with a small balance, avoid new credit before applying, or add a co-borrower's income.

Do you store the values I enter?

No. All calculations happen in your browser. Your data never leaves your device.

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