Debt-to-Income Ratio Calculator
Monthly Debt Payments
Monthly Income
Calculating...
How the Calculator Works
DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
Enter your total monthly debts — like mortgage, car loan, credit cards, and student loans — and your gross monthly income. The calculator displays your front-end (housing) and back-end (total debt) ratios.
Formula & Explanation
- Front-End DTI: (Mortgage / Income) × 100
- Back-End DTI: (All Debts / Income) × 100
Most lenders prefer:
- Front-end ≤ 28%
- Back-end ≤ 43%
Example Calculation
Monthly debts: $2,000
Monthly income: $5,000
→ DTI = (2,000 ÷ 5,000) × 100 = 40%
You're within acceptable limits for most lenders.
How to Use This Tool
- Add all monthly debt payments.
- Enter your gross monthly income (before taxes).
- Click Calculate to see your DTI ratio.
- Compare against typical mortgage qualification thresholds.
Features & Benefits
- Quick, accurate DTI calculation
- Distinguishes front- and back-end ratios
- Helps prepare for mortgage pre-approval
- Useful for budgeting or refinancing
- 100% free and privacy-safe
FAQs
Q1: What's a good DTI ratio?
A1: Below 36% is excellent; under 43% usually qualifies for most loans.
Q2: Does this include utilities?
A2: No — only debt obligations count.
Q3: How can I lower my DTI?
A3: Pay down balances, refinance high-interest loans, or increase income.