Your debt-to-income ratio (DTI) is the single number mortgage lenders, auto lenders, and even credit card issuers look at when they decide whether to approve you. It compares what you owe every month to what you earn, and it is the primary gatekeeper for a conventional mortgage. This calculator takes your gross monthly income and each recurring monthly debt payment, adds them up, and divides one by the other so you can see your exact DTI percentage in seconds.
The default example uses a household bringing in $6,000 gross per month with a $1,500 mortgage, a $300 car payment, a $200 student loan payment, and $150 in credit card minimums. Total monthly debt is $2,150, which gives a DTI of 35.8% — right around the 36% threshold lenders like to see. Adjust any field and the result updates instantly.
How to Use
- Enter your Gross Monthly Income. This is your total household pay before taxes, health premiums, and retirement contributions are withheld. Include salary, overtime, bonuses averaged over twelve months, alimony, child support, and any steady side income a lender would accept. Do not use your take-home pay; the ratio is always calculated against gross income.
- Fill in your Mortgage / Rent Payment. If you own, use principal and interest plus property tax, homeowner's insurance, and HOA dues (often called PITI). If you rent, enter your monthly rent. This is usually the largest line on the form.
- Add your Car / Auto Loan Payment. Include an auto lease payment here as well; lenders treat a lease like a car loan. If your car is paid off, leave the field at 0.
- Enter your Student Loan Payment. Use the actual monthly repayment amount from your servicer statement. If you are in deferment or forbearance, most lenders still require you to include a payment — check with the loan officer before you apply.
- Fill in your Credit Card Minimums. Use the minimum payment shown on your statement, not the full balance or the amount you actually pay. Carrying a $10,000 balance with a $200 minimum only counts the $200, but the high balance will still hurt your credit utilization.
- Read the result card. Total Monthly Debt is the sum of every obligation you entered. Debt-to-Income Ratio is that total divided by gross monthly income, shown as a percentage. DTI Assessment labels your profile as Excellent, Healthy, Caution, or Overextended.
The DTI Formula
The Consumer Financial Protection Bureau defines DTI as:
DTI = Total Monthly Debt Payments ÷ Gross Monthly Income × 100
Using the default inputs: $1,500 + $300 + $200 + $150 = $2,150 of monthly debt. Divide by $6,000 of gross income and you get 0.3583, which is 35.8%. That number sits just under the 36% rule-of-thumb ceiling, which means a conventional lender would view this profile as approvable but not roomy.
The four benchmarks lenders watch are:
- Under 20% — Excellent. You have substantial room to borrow and should qualify for the best rates.
- 20% to 36% — Healthy. This is the sweet spot; conventional lenders prefer the back-end ratio at or below 36%.
- 36% to 43% — Caution. You may still qualify, but expect a larger down payment, a higher credit score requirement, or a co-signer. The Qualified Mortgage rule caps most loans near 43%.
- Above 43% — Overextended. Most lenders will decline a new mortgage.
What Counts and What Does Not
Lenders only count obligations that appear on your credit report or a court order. Mortgage or rent, student loans, auto loans and leases, credit card minimums, personal loans, HELOC payments, alimony, and child support all go in. They generally do not count utility bills, cell phone plans, streaming subscriptions, gym memberships, groceries, gas, or childcare — even though those are real monthly costs, because they are not debts owed to a creditor.
This distinction matters. A family with a tight budget but no credit-card or student-loan payments can have a DTI of 15% while living paycheck to paycheck, and a family earning twice as much with a heavy car loan and student debt can show 45% DTI despite a comfortable lifestyle. The ratio measures debt load, not total spending.
Examples
Example 1 — The default household (35.8% DTI). Maria earns $6,000 gross per month. Her mortgage is $1,500, her car payment is $300, her student loan is $200, and her credit card minimums total $150. Total debt is $2,150, so her DTI is 2,150 ÷ 6,000 = 35.8%. She is just under the 36% line. If she pays off the $150 credit card balance, her DTI drops to $2,000 ÷ $6,000 = 33.3%, which gives her a much cleaner approval profile.
Example 2 — A strong applicant (under 30% DTI). David earns $8,000 gross per month. His mortgage is $2,000, he has no car payment, a $250 student loan, and $100 in credit card minimums. Total debt is $2,350, giving a DTI of 29.4%. Well under the 36% benchmark, he should qualify for the lowest rates on a conventional 30-year mortgage with a minimum down payment.
Example 3 — A high-income stress test. On a gross monthly income of $1,000,000 (for example, a partner at a fund taking a monthly draw), with a $350,000 mortgage, $8,000 in car payments, $5,000 in student loans, and $7,000 in credit card minimums, total monthly debt is $370,000. The DTI is 37.0% — illustrating that the ratio is a percentage, not a dollar figure. Even very large incomes can carry too much debt relative to themselves, which is why lenders use the ratio instead of a dollar threshold.
FAQ
What is a good debt-to-income ratio?
A DTI at or below 36% is considered healthy for a mortgage application. Ratios under 20% are excellent and signal lots of room to borrow. Between 36% and 43% you may still qualify, but expect higher rates or stricter requirements. Above 43%, most lenders will decline a new mortgage under the Qualified Mortgage rule.
Do lenders use gross or net income?
Lenders use gross monthly income — your pay before taxes and deductions. This is why your DTI can feel higher than your household budget suggests: the ratio compares debt to your full salary, not to the smaller amount that actually lands in your checking account. A $6,000 gross salary that nets $4,800 after taxes still uses $6,000 in the denominator.
Is rent included in my DTI?
Yes. Housing costs, whether rent or a mortgage, are the largest component of the ratio. Rent matters especially for first-time buyers who have never had a mortgage; lenders often ask for 12 months of canceled rent checks to verify a history of on-time housing payments.
What is the difference between front-end and back-end DTI?
The front-end (housing) ratio divides only your mortgage or rent by gross income, conventionally kept at or below 28%. The back-end (total debt) ratio divides housing plus every other recurring debt — student loans, car loans, credit cards, alimony — by gross income, conventionally kept at or below 36%. When lenders quote "your DTI," they almost always mean the back-end number, which is what this calculator computes.
How can I lower my DTI quickly?
Pay down or pay off small balances first — credit cards and personal loans — because removing a $150 minimum payment reduces your total debt dollar-for-dollar. Avoid opening a new auto loan or new credit cards in the six months before you apply. You can also increase your gross income, but paying off debt is the faster and more reliable lever.
Does DTI affect my credit score?
No. Your FICO credit score does not include income at all, so DTI never appears in your score. However, high DTI predicts default risk, which is why lenders evaluate it separately. You can have an excellent credit score and still be denied a mortgage because your DTI is too high, which is exactly why checking this number before you apply is so important.
Disclaimer
This debt-to-income ratio calculator is provided for informational purposes only and does not constitute financial, lending, or tax advice. DTI thresholds vary by lender, loan program, credit profile, and local market; the 20%, 36%, and 43% benchmarks are common rules of thumb, not universal rules. Always confirm your exact ratio and eligibility directly with a licensed mortgage lender or a HUD-approved housing counselor before making a borrowing decision.