A debt to income calculator divides your monthly debt payments by your gross monthly income to find your debt-to-income ratio (DTI), a number lenders use to judge whether you can afford a new loan. The debt to income calculator uses this formula: DTI% = (monthly debt payments / gross monthly income) x 100. $1,500 of monthly debts on $6,000 of income is a DTI of 25%.
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How to use the debt to income calculator
- Add up your required monthly debt payments.
- Enter your gross monthly income before taxes.
- Read your DTI as a percentage.
How the debt to income calculator works
Your debt-to-income ratio (DTI) compares the money you owe each month with the money you earn before taxes. The Consumer Financial Protection Bureau defines it as all your monthly debt payments divided by your gross monthly income. The debt to income calculator divides the two numbers and shows the result as a percentage.
- DTI = total monthly debt payments ÷ gross monthly income × 100
- Gross income is pay before taxes and deductions
- Debt payments are the required minimums, not what you choose to pay
Debt to income calculator worked example
You earn $6,000 a month before taxes. Your rent or mortgage payment is $1,100, your car loan is $300 and your credit card minimums are $100, for $1,500 in total. Your DTI is $1,500 ÷ $6,000 = 25%. The CFPB uses a similar example: $2,000 of monthly debt on $6,000 of gross income is a DTI of 33%.
| Monthly debts | Gross monthly income | DTI |
|---|---|---|
| $900.00 | $6,000.00 | 15% |
| $1,500.00 | $6,000.00 | 25% |
| $2,000.00 | $6,000.00 | 33% |
| $2,160.00 | $6,000.00 | 36% |
| $2,700.00 | $6,000.00 | 45% |
| $3,000.00 | $6,000.00 | 50% |
What to include
Include:
- Rent or your mortgage payment, including property taxes, homeowners insurance and HOA dues when a lender is assessing a new mortgage
- Car, student and personal loan payments
- Minimum payments on credit cards and lines of credit
- Child support and alimony you pay
- Lease payments and other required recurring obligations
Leave out everyday expenses such as groceries, utilities, phone bills, insurance you pay separately and income taxes. They matter for your budget but are not part of a lender’s DTI. Mortgage lenders often call the housing payment alone the front-end ratio and all debts together the back-end ratio.
What DTI do lenders accept?
There is no single legal limit. The federal General Qualified Mortgage rule once capped DTI at 43%, but the CFPB replaced that cap with limits based on the loan’s price compared with average rates; lenders still must consider DTI or residual income. Investor guidelines set their own maximums. Fannie Mae’s Selling Guide sets a 36% maximum total DTI for manually underwritten loans, which can rise to 45% for borrowers who meet credit score and reserve requirements, and allows up to 50% for loans approved through its Desktop Underwriter system. FHA, VA and USDA loans follow their own agency rules. Lower is always better: a lower DTI leaves more room in your budget and usually helps you qualify for a better rate.
How to lower your DTI
- Pay down revolving balances, which lowers minimum payments.
- Avoid new loans or credit card balances before applying for a mortgage.
- Pay off installment loans that are close to their end.
- Increase documented income, for example by adding a co-borrower whose income and debts both count.
- Consider a smaller loan amount or a larger down payment, which lowers the new housing payment.
Run the debt to income calculator again after each change. Each $100 cut from monthly debt lowers DTI by about 1.7 percentage points on $6,000 of income.
Estimates for education only, not financial advice. Your lender’s figures are final.
Front-end and back-end ratios
Some lenders look at two ratios. The front-end ratio divides only the housing payment by gross income; the back-end ratio divides all monthly debts, including housing, by gross income. With a $1,100 housing payment and $6,000 of income, the front-end ratio is about 18%, while all $1,500 of debts give a back-end ratio of 25%. Enter only the housing payment in the debt to income calculator to see the front-end figure, then enter every debt to see the back-end figure.
Related converters and calculators
Related calculators:
- House affordability calculator: affordability
- Mortgage calculator: mortgages
- Debt payoff calculator: payoff
- Budget calculator: budget
Sources
CFPB: What is a debt-to-income ratio?; CFPB: General QM loan definition final rule; Fannie Mae Selling Guide B3-6-02: Debt-to-Income Ratios.
Formula and method
DTI% = (monthly debt payments / gross monthly income) x 100.
Simple front-end ratio only. Does not compute max loan size or housing expense ratios separately.
Questions about this calculator
How do I calculate DTI?
Divide total monthly debt payments by gross monthly income and multiply by 100.
Is rent included in DTI?
Yes, most lenders include your housing payment.
Are utilities included?
No, everyday expenses are not part of DTI.
What DTI does Fannie Mae allow?
36% for manual underwriting, up to 45% with compensating factors, and up to 50% through Desktop Underwriter.
Is 43% still the legal limit?
No, the General QM rule now uses price-based limits.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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