Debt-to-Income Ratio Calculator
Enter your gross income and monthly debt payments to see your debt-to-income ratio (DTI), your housing ratio, and how much room you have before common lender limits. Free, instant, no sign-up.
Monthly debt payments
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. With $6,000 a month in income, a $1,500 rent payment, a $400 car loan, and $200 in card minimums, your DTI is $2,100 ÷ $6,000 = 35%.
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.
Common DTI limits
| 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 |
| 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.
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 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.
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. $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.
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.
Income that's hard to document?
Connect your bank and get a report of your estimated monthly income from actual deposits, including freelance and gig income. One report is $14.99.
Get a proof of income report