Debt-to-Income (DTI) Ratio Calculator
Your debt-to-income ratio is the share of your gross monthly income that goes to debt payments. Lenders use it to judge how much new debt you can handle — a lower DTI means more borrowing capacity and better loan terms.
Enter your gross monthly income and the total of all monthly debt payments (rent or mortgage, car loans, minimum card payments, student loans). The calculator returns your DTI and a quick read on where it sits.
Check it before applying for a mortgage or a car loan, and again whenever you take on new debt, to see how lenders will view your borrowing capacity.
Enter your values to see the result.
How this is calculated
Your debt-to-income (DTI) ratio is the share of your gross monthly income that goes to debt payments. This calculator divides your total monthly debt payments by your gross monthly income and expresses the result as a percentage.
The debt total should include rent or your mortgage payment, car loans, student loans, minimum credit-card payments, and any other fixed debt obligations. It excludes living expenses such as utilities, insurance, groceries, transport and entertainment, which lenders do not count as debt. The income figure is gross (before tax), because that is what underwriters use.
Most mortgage lenders prefer a total DTI below 36%, with housing costs alone under 28%, and many cap total DTI at 43–50% depending on the product and market. A lower ratio means more borrowing capacity and better terms. The model does not capture credit score, employment stability, reserves, or the difference between front-end (housing) and back-end (total) DTI that lenders compute separately.
Worked example
Gross monthly income $6,000, total monthly debt payments $1,800 (rent, car loan and minimum card payments).
- 1DTI = 1,800 ÷ 6,000 × 100 = 30%.
- 2At 30% you sit below the 36% threshold most lenders prefer, so your borrowing capacity is healthy.
- 3If a new $400/month car loan raised debts to $2,200, DTI would rise to 37% — borderline for some lenders.
Frequently asked questions
- What DTI do lenders want?
- Most mortgage lenders prefer a total DTI below 36%, with housing costs under 28%. Conventional loans often cap at 43–50% depending on the product and market.
- Is rent included in DTI?
- Yes. Monthly rent or mortgage payments count as debt for DTI. Utilities, insurance and living expenses generally do not.
- How do I lower my DTI?
- Pay down existing balances, avoid new debt, and increase income. Even a small balance reduction can move you under a lender’s threshold.
- Is rent included in DTI?
- Yes. Monthly rent or mortgage payments count as debt for DTI. Utilities, insurance and living expenses generally do not, because they are not fixed debt obligations.
- How do I lower my DTI?
- Pay down existing balances, avoid new debt, and increase income. Even a small balance reduction can move you under a lender’s threshold and unlock better loan terms.
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Method: monthly debt payments ÷ gross monthly income. No external data source. Last updated: September 2026.
These results are indicative estimates for planning only and do not constitute financial advice. Actual loan terms, tax rules, investment returns and product conditions vary by country, provider and your personal circumstances. Always confirm figures with your bank, tax authority or a qualified financial adviser before making decisions.