Debt-to-Income Ratio Calculator
See what share of your income goes to debt.
Results update as you type.
This calculator is for illustrative purposes only. Actual rates, fees and terms vary by lender. Consult a qualified financial adviser before making borrowing decisions.
How it works
Your debt-to-income ratio, or DTI, is the share of your gross monthly income that goes toward paying debts, expressed as a percentage. It matters because it is one of the first numbers a lender checks when you apply for a mortgage, car loan or personal loan: it signals how much room your budget has to take on a new payment. This debt-to-income calculator adds up your recurring monthly debt obligations — mortgage or rent, car loans, student loans, minimum credit card payments and similar — and divides that total by your gross monthly income before tax, then multiplies by 100 to get the percentage. Comparing debt to pre-tax income is the standard the lending industry uses, so the figure here lines up with how underwriters actually assess you. The tool also labels the result: under 36% is generally healthy and leaves comfortable margin, 36% to 43% is manageable but tighter, and above 43% is high and often the ceiling for a qualified mortgage. Borrowers use a DTI calculator to gauge whether they are ready to apply, to see how paying down a balance would improve their standing, and to set a realistic borrowing target. Lower is better: a smaller ratio widens your loan options and typically earns better terms, so if yours is high, reducing debt or raising income before applying can meaningfully change the offers you receive.
DTI = total monthly debt ÷ gross monthly income × 100
Total monthly debt is the sum of every recurring debt payment you owe in a month, and gross monthly income is what you earn before taxes and deductions. Dividing the two shows what fraction of your income is already committed to debt, and multiplying by 100 states it as a percentage lenders can read at a glance. Gross rather than net income is used because it is the consistent, verifiable figure underwriters rely on, so the ratio matches the one a lender will calculate.
Source:Consumer Financial Protection Bureau
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter total monthly debt payments and gross monthly income.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Debt-to-income ratio updates instantly as you type — no button to press.
Frequently asked questions
What counts as a good debt-to-income ratio?
Lenders generally view a DTI below 36% as healthy, with the debt leaving comfortable room in your budget. Between 36% and 43% is still workable for many loans but signals a tighter budget. Above 43% is considered high and is often the upper limit for a qualified mortgage. The lower your ratio, the stronger you look to lenders and the better the rates and terms you are likely to be offered, so aim well under 36% where you can.
Which debts are included in the calculation?
Include recurring monthly obligations: your mortgage or rent, auto loans, student loans, personal loans, minimum credit card payments, and court-ordered payments like child support or alimony. Do not include everyday living costs such as groceries, utilities, insurance premiums or streaming subscriptions, since lenders exclude those from DTI. Enter the sum of your qualifying debt payments so the ratio reflects the same figure an underwriter would use when reviewing your application.
Should I use gross or net income?
Use gross income — your total pay before taxes, retirement contributions and other deductions. This is deliberate: lenders calculate DTI against gross income because it is a standardized, easily verified figure that they can confirm from pay stubs and tax returns. Using net income would produce a higher, non-comparable ratio that does not match how you will be assessed. Enter your monthly gross pay so the result mirrors the lender's own calculation.
How can I lower my debt-to-income ratio?
You can reduce it two ways: cut your monthly debt or raise your income. Paying off a small loan entirely removes its whole payment from the numerator, which often helps more than chipping at a large balance. Avoiding new debt before applying keeps the ratio from climbing. On the income side, a raise, a side income or adding a co-borrower's income can lift the denominator. Even a modest improvement can move you into a better lending tier.
Does my DTI affect my credit score?
Not directly — your credit score does not include your income, so DTI is not a scoring factor. However, the two are related: high balances that push up your DTI also raise your credit utilization, which does affect your score. Lenders look at both separately, using your score to judge repayment history and your DTI to judge capacity to take on more debt. Keeping debt low helps both numbers at once.