Financial · Borrowing & Debt
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Debt-to-Income Ratio Calculator
Enter your total monthly debt payments and your gross (pre-tax) monthly income to see your DTI ratio and where it falls against the bands lenders commonly use.
Monthly figures
$
$
On-screen number pad
Tap to type into the highlighted field
Debt-to-income ratio
30.0%
Good
Max debt payment to stay under 36%
$2,160.00
Step-by-step proofCheck by hand
This is a general DTI estimate, not a lending decision. Lenders calculate DTI differently — some exclude certain debts or include projected housing costs — and use it alongside credit score, assets and other factors. Consult a mortgage or financial professional for how a specific lender will evaluate your application.
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How DTI is calculated
Debt-to-income ratio is your total recurring monthly debt payments divided by your gross (pre-tax) monthly income, expressed as a percentage. Lenders use it — alongside credit score and other factors — to judge how much more debt you could reasonably take on.
The bands, in full
Under 36%: good. 36–43%: acceptable for most lenders. 43–50%: risky — above the CFPB's
qualified-mortgage backstop. 50% and above: concerning — over half of income already
goes to debt.
Gross, not take-home
DTI uses gross (pre-tax) income, not your take-home pay — a common mix-up that makes
the ratio look worse than a lender would calculate it.
The formula
DTI = total monthly debt payments ÷ gross monthly income
Worked example
$1,800 in monthly debt payments against $6,000 gross monthly income: 1,800 ÷ 6,000 = 30.0% — in the "Good" band.
Frequently asked questions
What counts as a monthly debt payment for DTI?
Recurring debt obligations: rent or mortgage (including property tax and insurance if escrowed), car loans, student loans, minimum credit card payments, and personal loan payments. It does not include everyday living expenses like groceries, utilities, or insurance premiums that aren't tied to a loan.
What's a good DTI ratio?
Most lenders consider 36% or below healthy, and the Consumer Financial Protection Bureau's "qualified mortgage" rule generally caps DTI at 43% for that loan category (though many lenders offer other products above that). Below 36% typically means the widest range of loan options and the best rates.
Is DTI the same as a credit utilization ratio?
No — credit utilization compares your credit card balances to your credit limits and affects your credit score. DTI compares your monthly debt payments to your income and is used by lenders to judge whether you can take on more debt. They're both about debt, but they measure different things.
Sources and method
- Consumer Financial Protection Bureau — qualified mortgage 43% DTI backstop.
- Standard published mortgage-industry DTI bands (36%/43%/50%).