Debt-to-Income Ratio Calculator
Calculate your DTI ratio to see how lenders evaluate your ability to manage monthly payments.
Monthly Income (Before Taxes)
Bonuses, side income, etc.
Monthly Debt Payments
Include tax & insurance if escrowed
Personal loans, child support, alimony, etc.
Enter your income and debts
to calculate your DTI ratio
Your DTI Ratio
Total debt-to-income
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DTI Ranges
How lenders view your debt level
Room to Borrow
Before hitting 43% DTI
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additional monthly debt
Debt-to-Income Ratio
DTI compares your monthly debt payments to your gross monthly income. Lenders use it to assess your ability to manage payments and repay borrowed money. A lower DTI means less risk for lenders.
How to Use
- 1 Enter your gross monthly income (before taxes).
- 2 Enter your monthly housing payment (rent or mortgage).
- 3 Add all other monthly debt payments.
- 4 See your DTI ratio and where you stand with lenders.
FAQ
What's front-end vs back-end DTI?
Front-end DTI only includes housing costs. Back-end DTI includes all monthly debt payments. Lenders typically want front-end under 28% and back-end under 36-43%.
Why is 43% the magic number?
43% is the maximum DTI for a "Qualified Mortgage" under federal rules. Many lenders use this as a hard cap, though some may allow higher DTI with compensating factors like excellent credit.
What debts count toward DTI?
Monthly payments on mortgages, car loans, student loans, credit cards (minimum payment), personal loans, child support, and alimony. Utilities, insurance, and subscriptions typically don't count.
How can I lower my DTI?
Pay down debt (especially high-payment loans), avoid new debt, increase income, or pay off smaller debts completely. Even small reductions in monthly payments help.
Does DTI affect my credit score?
No, DTI isn't part of your credit score calculation. However, high credit utilization (which often correlates with high DTI) does affect your score.
Calculator Limitations
This calculator provides estimates based on standard DTI guidelines. Individual lenders have different requirements and may consider other factors like credit score, assets, and employment history.