How to use this calculator
- Enter or choose gross monthly income (before tax).
- Enter or choose rent or mortgage payment.
- Enter or choose car loan payments.
- Enter or choose student loan payments.
- Enter or choose credit card minimum payments.
- The debt-to-income ratio (back-end) updates as you type. Use Copy result or Share to keep it.
Method
Back-end DTI = Total monthly debt payments ÷ Gross monthly income × 100; Front-end = Housing payment ÷ Gross monthly income × 100
- Debt payments
- required minimum monthly payments, not living costs like food or utilities
- Gross income
- income before tax and deductions
Worked example
- Total debt payments = 1,500 + 400 + 200 + 100 = $2,200.
- Back-end DTI = 2,200 ÷ 6,000 = 36.67%; front-end = 1,500 ÷ 6,000 = 25%.
- At 36%, payments could total 6,000 × 0.36 = $2,160, so you are $40 over.
With $2,200 of monthly debt payments on $6,000 of income, your DTI is 36.67%, just above a 36% benchmark.
What the result means
A lower DTI means more of your income is free, which makes approval and better rates more likely. Paying off a small loan entirely lowers DTI more than paying down a large one.
Assumptions and limits
- Only required monthly debt payments count; living expenses are excluded.
- Lenders differ on what counts as income and debt (for example, how they treat student loans in deferment); their figure can differ from yours.
Questions
What DTI do lenders want?
It depends on the lender and the loan program, so ask. Many lenders consider a lower DTI less risky, and some programs set a published maximum.
Does rent count?
Your current rent is part of your housing payment for your own budgeting. When you apply for a mortgage, the lender uses the proposed new housing payment instead.
Please note: This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.