Debt-to-Income Ratio Calculator
Find out what percentage of your gross monthly income goes toward debt payments. Lenders use your DTI ratio to evaluate mortgage and loan applications.
About this calculator
Your debt-to-income (DTI) ratio measures how much of your gross monthly income is consumed by recurring debt obligations. The formula is: DTI (%) = ((mortgagePayment + creditCardPayments + loanPayments + otherDebtPayments) / monthlyIncome) × 100. Lenders distinguish between two types: the front-end ratio (housing costs only) and the back-end ratio (all debts combined), which is what this calculator computes. Most conventional mortgage lenders prefer a DTI below 36%, while FHA loans may allow up to 43%. A lower DTI signals to lenders that you have sufficient income headroom to service new debt responsibly. Improving your DTI requires either paying down existing balances or increasing your gross income.
How to use
Suppose your gross monthly income is $6,000. Your monthly obligations are: mortgage $1,200, credit card minimums $150, car loan $350, and student loan $200. Total monthly debt = $1,200 + $150 + $350 + $200 = $1,900. DTI = ($1,900 / $6,000) × 100 = 31.7%. This result falls below the 36% threshold most lenders prefer, meaning you would likely qualify for additional credit. Enter your own figures to see where you stand.
Frequently asked questions
What is a good debt-to-income ratio for getting a mortgage?
Most conventional lenders look for a DTI at or below 36%, with no more than 28% of that going toward housing costs. FHA loans can approve borrowers up to 43% DTI, and some lenders stretch to 50% with compensating factors like a high credit score or large down payment. The lower your DTI, the better your loan terms are likely to be. Aim for under 36% before applying for a major loan.
How does debt-to-income ratio affect my credit score?
Your DTI ratio itself is not directly factored into FICO or VantageScore calculations. However, the underlying behaviors that raise your DTI — high balances, multiple open loans — do affect your credit utilization and payment history, both of which influence your score heavily. Lenders use DTI separately as an underwriting criterion during loan applications. Keeping both your DTI and credit utilization low gives you the strongest overall financial profile.
What monthly debts should I include when calculating my DTI ratio?
Include all recurring, obligatory monthly debt payments: mortgage or rent, minimum credit card payments, auto loans, student loans, personal loans, child support, and alimony. Do not include everyday living expenses such as groceries, utilities, insurance premiums, or subscription services. Using gross (pre-tax) income as the denominator is standard practice, since that is the figure lenders verify through pay stubs and tax returns.