Debt-to-Income Ratio Calculator

Find the share of your gross income that goes to debt payments, the ratio mortgage and auto lenders check first.

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Before taxes; divide yearly salary by 12
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Include property tax, insurance and HOA if you own
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Personal loans, child support, alimony

How to use the Debt-to-Income Ratio Calculator

  1. Enter the gross monthly income – Before taxes; divide yearly salary by 12.
  2. Enter the rent or mortgage payment – Include property tax, insurance and HOA if you own.
  3. Enter the auto loan payments.
  4. Enter the student loan payments.
  5. Enter the credit card minimum payments.
  6. Enter the other debt payments – Personal loans, child support, alimony.
  7. Press Calculate. The result updates automatically as you type.

About the Debt-to-Income Ratio Calculator

Your debt-to-income ratio shows lenders how much of your paycheck is already promised to other creditors. It is calculated on gross (pre-tax) income and only includes recurring debt payments that appear on a credit report or court order, plus your housing cost.

A classic mortgage guideline is the 28/36 rule: housing under 28% of gross income and total debt under 36%. Many conventional, FHA and VA loans allow higher ratios, often up to 43–50%, when other factors such as credit score and savings are strong.

To lower your DTI, pay down balances with small remaining terms first (eliminating a payment entirely helps most) or increase documented income. Results are estimates, not financial advice.

Formula

Back-end DTI = Total monthly debt payments ÷ Gross monthly income × 100%
Front-end DTI = Housing payment ÷ Gross monthly income × 100%

Example: $2,620 of debt payments on $6,500 of gross income gives a DTI of 40.3%. Everyday expenses such as groceries, utilities and insurance premiums are not counted.

Example calculation

Using the default values:

  • Gross monthly income = $6500
  • Rent or mortgage payment = $1800
  • Auto loan payments = $450
  • Student loan payments = $250
  • Credit card minimum payments = $120

the calculator returns:

  • Debt-to-income ratio (back-end): 40.3%
  • Housing ratio (front-end): 27.7%
  • Total monthly debt payments: $2,620.00
  • Assessment: Manageable – many lenders still approve, often with stricter terms
  • Payment room up to 36% DTI: $0.00

Frequently asked questions

What is a good debt-to-income ratio?

Under 36% is generally considered healthy, with no more than 28% going to housing. Under 20% is excellent.

Does DTI use gross or net income?

Gross income, meaning before taxes and deductions.

Are utilities and phone bills included?

No. DTI only counts debt obligations such as loans, credit card minimums, housing payments and court-ordered support.

Last updated: · Category: Financial calculators

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