Debt-to-Income Ratio Calculator
Enter your gross income and monthly debt payments to see your debt-to-income ratio (DTI), your front-end housing ratio, and the most you could spend on housing under the 28/36 rule. Free, instant, no sign-up.
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What is debt-to-income ratio?
Your debt-to-income ratio is the share of your gross monthly income that goes to debt payments. Lenders use it to judge whether you can take on a new payment, and it's one of the biggest factors in mortgage, auto, and personal loan applications alongside your credit.
DTI = total monthly debt payments ÷ gross monthly income × 100
A lower ratio means more of your income is free after debt payments. See the debt-to-income ratio definition for how underwriters use it.
How to calculate debt-to-income ratio
- Add up your monthly debt payments. Use the minimum or scheduled payment for each debt, not the balance.
- Find your gross monthly income. Use pay before taxes. If you're paid yearly, divide by 12.
- Divide debts by income and multiply by 100. The result is your DTI as a percentage.
Example: someone earning $6,000 a month before taxes with these payments.
| Monthly payment | Amount |
|---|---|
| Rent | $1,500 |
| Car loan | $400 |
| Student loan | $250 |
| Credit card minimums | $150 |
| Total debt payments | $2,300 |
$2,300 ÷ $6,000 = 0.383, so the DTI is 38.3%. The front-end (housing) ratio is $1,500 ÷ $6,000 = 25%.
Front-end vs. back-end DTI
- Front-end (housing) ratio: only your housing payment divided by income. Mortgage lenders often look for 28% to 31% or less.
- Back-end ratio: all monthly debt payments, including housing, divided by income. This is what people usually mean by DTI.
What is a good debt-to-income ratio?
| DTI | What it usually means |
|---|---|
| 35% or less | Healthy. Most lenders see this as comfortable, and you likely have room for savings. |
| 36% to 43% | Manageable. Within many lenders’ limits, though you may get fewer or pricier offers. |
| 44% to 50% | High. Some loan programs still allow it with strong credit, savings, or other factors. |
| Over 50% | Very high. Half your gross pay goes to debt, so most lenders will want it lower first. |
The 28/36 rule
The 28/36 rule says to keep housing costs at or below 28% of gross monthly income and all debt payments at or below 36%. On $6,000 a month, that's up to $1,680 for housing and $2,160 for everything. If you already have $600 in other debt payments, the 36% limit leaves $1,560 for housing, so that becomes your cap. The calculator above runs this for you as “max housing payment.”
DTI limits for a mortgage, car loan, and more
| Guideline | Typical DTI limit | Notes |
|---|---|---|
| The 28/36 rule | 28% housing / 36% total | Classic budgeting and lending guideline |
| Conventional mortgage | Up to about 45–50% | Higher limits usually need strong credit or reserves |
| FHA loan | 31% / 43% standard | Can go higher with compensating factors |
| VA loan | 41% guideline | Also looks at residual income |
| USDA loan | 29% / 41% | Rural home loans; exceptions possible with strong files |
| Auto loan | Often under 45–50% | Including the new car payment; varies by lender |
| Personal loans and cards | Often 35–40% | Varies widely by lender |
These are commonly cited figures, not guarantees. Each lender sets its own limits, and automated underwriting can approve higher ratios for some borrowers. VA loans also check residual income, and lenders weigh compensating factors like savings when DTI runs high.
What counts (and what doesn't)
Count recurring debt payments: rent or mortgage (with property tax, insurance, and HOA), car loans and leases, student loans, minimum credit card payments, personal loans, and child support or alimony. Don't count utilities, phone, groceries, subscriptions, or insurance premiums. For income, use gross pay before taxes; if your pay varies, use a 12-month average from our gross monthly income calculator.
How to lower your DTI
- Pay off or pay down the debts with the biggest monthly payments first, not just the highest balances.
- Hold off on new car loans, cards, or buy-now-pay-later plans before you apply.
- Refinance or consolidate to a lower monthly payment.
- Add income you can document, like a co-borrower or side income. Self-employed and gig income counts when you can prove it, which is where bank-based proof of income helps.
DTI vs. rent-to-income for renters
Landlords rarely use DTI. Most compare rent to gross income instead, often with the 3x rent rule. If you're applying for an apartment, check your ratio with the rent-to-income calculator.
Frequently asked questions
How do you calculate debt-to-income ratio?
Add up your monthly debt payments (rent or mortgage, car loans, student loans, credit card minimums, and other loans), then divide by your gross monthly income and multiply by 100. $2,100 in payments on $6,000 of monthly income is a 35% DTI.
What is a good debt-to-income ratio?
Under 36% is generally considered healthy, with no more than about 28% going to housing. Many lenders accept up to 43%, and some loan programs go to around 50% for borrowers with strong credit or savings.
What counts as debt in a DTI ratio?
Recurring debt payments: rent or mortgage (including property tax, insurance, and HOA), car loans and leases, student loans, credit card minimums, personal loans, and child support or alimony. Utilities, phone bills, groceries, and insurance premiums usually don’t count.
Is DTI based on gross or net income?
Gross income, before taxes and deductions. That’s why a DTI that looks fine on paper can still feel tight on your take-home pay.
What is the 28/36 rule?
A common guideline that says housing costs should take no more than 28% of gross monthly income, and all debt payments together no more than 36%. On $6,000 a month, that’s up to $1,680 for housing and $2,160 for all debts.
What is the maximum DTI for an FHA loan?
FHA’s standard guideline is 31% for housing and 43% for total debt. Borrowers approved through automated underwriting with compensating factors, such as cash reserves or a strong credit history, can sometimes go higher.
What DTI do you need for a car loan?
There’s no single rule. Many auto lenders prefer a DTI under about 45% to 50% including the new car payment, and a lower ratio usually helps you get a better rate.
Does debt-to-income ratio affect your credit score?
No. Credit bureaus don’t know your income, so DTI isn’t part of your score. Lenders look at it separately. Your credit utilization (card balances compared with limits) does affect your score.
Do landlords use debt-to-income ratio?
Most landlords use rent-to-income instead, often the 3x rent rule: gross monthly income of at least three times the rent. Some also look at other debts, especially for higher rents.
How can I lower my debt-to-income ratio?
Pay down balances with the highest monthly payments, avoid taking on new debt before applying, refinance to lower payments, or add documented income such as a co-borrower or side income you can prove.
Related calculators
- Rent-to-income calculator
- Mortgage affordability calculator
- FHA loan calculator
- VA loan calculator
- Gross monthly income calculator
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