Lenders prefer a DTI of 36% or less; 43% is the usual limit for a qualified mortgage, though some programs go to 50%. DTI counts minimum payments, not living costs like food and utilities.
How to use the Debt to Income Ratio Calculator
- Gross monthly income
- Rent or mortgage payment (incl. tax and insurance)
- Car loan payments
- Student loan payments
- Credit card minimum payments
- Personal loan payments
- Other debts (child support, alimony)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter your gross monthly income and each monthly debt payment.
Tips
- Compare loans by APR and total cost, not just the monthly payment.
- Extra payments go straight to principal and can save a lot of interest.
- Pay off the highest-rate debt first if you want to save the most money.
- Check for prepayment penalties before paying a loan off early.
Common mistakes to avoid
- Stretching a loan term to lower the payment without seeing the extra interest.
- Paying only the minimum on credit cards.
- Forgetting fees that are rolled into the loan.
Inputs explained
| Field | What to enter |
|---|---|
| Gross monthly income | Amount in your currency |
| Rent or mortgage payment (incl. tax and insurance) | Amount in your currency |
| Car loan payments | Amount in your currency |
| Student loan payments | Amount in your currency |
| Credit card minimum payments | Amount in your currency |
| Personal loan payments | Amount in your currency |
| Other debts (child support, alimony) | Amount in your currency |
What each result means
- Total monthly debt payments = [Rent or mortgage payment (incl. tax and insurance)] + [Car loan payments] + [Student loan payments] + [Credit card minimum payments] + [Personal loan payments] + [Other debts (child support, alimony)]
- Debt-to-income ratio = [Total monthly debt payments]÷[Gross monthly income]×100
- Front-end (housing) ratio = [Rent or mortgage payment (incl. tax and insurance)]÷[Gross monthly income]×100
- Room for new payments at 36% = max(0.36×[Gross monthly income] – [Total monthly debt payments], 0)
- Room for new payments at 43% = max(0.43×[Gross monthly income] – [Total monthly debt payments], 0)
Example values
How the main result changes when Gross monthly income changes and everything else stays at the example values above:
| Gross monthly income | Debt-to-income ratio (%) |
|---|---|
| 3,500 | 74.86 |
| 5,250 | 49.9 |
| 7,000 | 37.43 |
| 8,750 | 29.94 |
| 10,500 | 24.95 |
| 14,000 | 18.71 |
Formula
DTI = total monthly debt payments ÷ gross monthly income × 100Front-end ratio = housing payment ÷ gross monthly income × 100Room for new debt = 36% (or 43%) × income − current paymentsWorked example
Inputs — Gross monthly income: $7,000; Rent or mortgage payment (incl. tax and insurance): $1,800; Car loan payments: $450; Student loan payments: $250; Credit card minimum payments: $120; Personal loan payments: $0; Other debts (child support, alimony): $0.
Results — Total monthly debt payments = $2,620.00; Debt-to-income ratio = 37.43 %; Front-end (housing) ratio = 25.71 %; How lenders see it = Acceptable (36–43%); Room for new payments at 36% = $0.00; Room for new payments at 43% = $390.00.
Frequently asked questions
What is a good debt-to-income ratio?
36% or less; under 20% is excellent.
What is the maximum DTI for a mortgage?
Usually 43%, up to 50% for some programs.
Does DTI affect my credit score?
No – but lenders use it alongside your score.
What formula does the Debt to Income Ratio Calculator use?
DTI = total monthly debt payments ÷ gross monthly income × 100.