Debt-to-Income Calculator
Debt-to-income ratio is the number lenders use to decide whether you can carry another payment. It is also the fastest self-diagnostic in personal finance. This calculator gives you the ratio from your monthly debt payments and gross income, so you know where you stand before an underwriter tells you.
Inputs
Result
30%
Healthy debt-to-income ratio
How the debt-to-income calculator works
DTI = total monthly debt payments ÷ gross monthly income × 100. Gross means before tax.
Front-end DTI counts only housing costs — PITI plus any HOA. Back-end DTI counts housing plus all other minimum debt payments.
Include minimum payments on cards, all loan instalments, student debt and legally required support payments. Exclude utilities, groceries, insurance not escrowed, and subscriptions.
Worked example: 7,500 gross monthly income
- Housing: 1,850 mortgage PITI + 120 HOA = 1,970. Front-end DTI = 26.3%.
- Other debt: 420 car loan + 180 student loan + 150 card minimums = 750.
- Total debt payments: 2,720. Back-end DTI = 36.3%.
- That sits right at the conventional 36% guideline, so approval is likely but tight.
- Clearing the car loan drops back-end DTI to 30.7% and frees roughly 90,000 of borrowing capacity.
Common mistakes to avoid
Using net income instead of gross
Lenders use pre-tax income. Calculating on take-home pay makes your ratio look 20–30% worse than the figure being underwritten.
Using actual card payments rather than minimums
Underwriters use the minimum due. If you pay 800 on a card whose minimum is 150, only 150 counts.
Forgetting deferred student loans
Loans in deferment usually still count, often at an imputed percentage of the balance rather than zero.
Frequently asked questions
What DTI do lenders want?
Conventional guidance is 28% front-end and 36% back-end. Many programmes stretch to 43–50% with strong credit, reserves or a large down payment.
What counts as debt in the calculation?
Housing costs, loan instalments, minimum card payments, student loans and court-ordered support. Not utilities, food, insurance or subscriptions.
How do I lower my DTI quickly?
Pay off the smallest-balance instalment loan to remove its whole payment, avoid new credit, and increase documented income.
Does a high DTI mean automatic rejection?
No, but it narrows options and raises the rate. Compensating factors like large reserves or a long credit history can offset it.
Is DTI the same as credit utilisation?
No. Utilisation compares card balances to limits and affects your credit score; DTI compares payments to income and affects affordability.
Learn more
The 28/36 rule: how lenders decide what you can borrow
Your credit score gets the attention, but debt-to-income is what usually decides the answer.
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