Debt-to-Income Ratio Calculator
Calculate your debt-to-income (DTI) ratio instantly. Find out if you qualify for a mortgage and see how lenders evaluate your financial health.
How It Works
List your monthly gross income sources and your monthly debt payments (mortgage/rent, car loan, student loans, credit card minimums, etc.). The calculator divides total debt by total income to produce your debt-to-income (DTI) ratio and compares it against standard lender thresholds.
Formula
DTI (%) = (Total Monthly Debt Payments ÷ Total Monthly Gross Income) × 100
Total monthly debt includes housing payment, auto loans, student loans, minimum credit card payments, and any other recurring debt obligations — but not everyday expenses like groceries or utilities.
Worked Example
Calculating DTI for a mortgage pre-qualification
- Gross monthly income: $6,000 salary + $500 other income = $6,500
- Mortgage/rent: $1,400
- Car payment: $350
- Student loan: $200
- Credit card minimum: $75
- Total monthly debt: $2,025
- DTI = $2,025 / $6,500 × 100 = 31.2% — rated 'Good', within conventional mortgage guidelines
Common Mistakes
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Excluding rent because 'it's not a loan'
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Lenders count your current housing payment (rent or mortgage) as part of DTI, since it's a large recurring obligation that affects your ability to take on new debt.
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Using net (take-home) income instead of gross
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Lenders always use gross income for DTI calculations. Using your net pay will produce a DTI ratio that looks artificially high and doesn't match what a lender will calculate.
