Debt-to-Income Calculator
Your DTI ratio — what lenders use to size your mortgage approval.
Input sheet
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Your debt-to-income ratio is the single number mortgage lenders lean on hardest. It compares your monthly debt payments to your gross income and signals how much new borrowing you can realistically handle.
How it works
DTI = total monthly debt payments ÷ gross monthly income × 100. Lower is better; under 36% is considered healthy.
DTI is the share of your pre-tax monthly income already committed to debt payments. Lenders use it to gauge risk: the more of your paycheck that is spoken for, the less cushion you have if rates rise or income dips.
The widely used thresholds are roughly 36% (healthy), up to 43% (often the ceiling for a qualified mortgage), and above that (lenders tighten or decline). Lowering the ratio — by paying down balances or raising income — directly expands what you can qualify for.
Debt-to-income ratio = total monthly debt payments ÷ gross monthly income × 100. Gross income is your pay before taxes and deductions.
Worked examples
$6,000 gross monthly income with $1,800 in monthly debt payments. → 30.0% DTI — in the healthy range lenders favor.
$1,800 ÷ $6,000 = 0.30, or 30%. Under the 36% guideline, this leaves comfortable room for a new mortgage payment.
Tips & gotchas
- Use gross (pre-tax) income — that is what lenders use. Plugging in take-home pay overstates your ratio and misrepresents how a bank sees you.
- Count only recurring debt obligations: rent or mortgage, auto loans, student loans, and minimum credit-card payments. Leave out utilities, groceries, and other variable spending.
- Paying down a card or finishing off a small loan can drop your DTI fast — sometimes enough to push you under a lender's cutoff before you apply.
- Lenders often look at two ratios: front-end (housing only) and back-end (all debt). This calculator covers the back-end ratio, the one that usually drives approval.
FAQ
Which debts count?
Recurring obligations — rent or mortgage, car loans, student loans, minimum credit-card payments. Utilities and groceries do not.
What DTI do I need to qualify for a mortgage?
Many lenders cap the back-end ratio around 43% for a qualified mortgage, though some programs allow higher with strong credit or reserves. Under 36% gives you the most options and best pricing.
Should I include my future mortgage payment?
To test affordability, yes — add the expected new housing payment to your current debts to see the DTI a lender will evaluate at approval.
Does my credit card limit affect DTI?
Only the minimum monthly payment counts, not the limit or full balance. That said, carrying large balances hurts your credit score, which lenders weigh separately.
How do I lower my DTI quickly?
Pay off or pay down the debts with the highest minimum payments, avoid taking on new loans before applying, and raise documented income if you can. Each removed payment lowers the ratio immediately.
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