Debt-to-Income Ratio Calculator
Divide your total monthly debt payments by your gross monthly income and multiply by 100. $1,500 of monthly debts on $6,000 gross income is a 25% DTI — comfortably below the 36% line most lenders consider healthy, and far below the 43% mortgage limit.
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How it works
DTI is the sum of your recurring monthly debt payments divided by your gross (pre-tax) monthly income, expressed as a percentage. Lenders use it to judge whether you can comfortably afford new payments on top of your existing obligations.
Worked example
You earn $6,000 gross per month. Your rent is $1,200, car payment $300, student loan $150, and minimum credit card payments $250 — total $1,900. $1,900 ÷ $6,000 = 31.7% DTI. That's under the 36% threshold most lenders prefer, so you'd likely qualify for additional borrowing with a good credit score.
Assumptions
- Gross income: Use pre-tax income; lenders use your gross income from pay stubs and tax returns
- Monthly debts: Includes minimum payments on credit cards and any other recurring obligations
- Lender standards: Conventional mortgage limits are typically 43%; some lenders allow up to 50% with compensating factors
What the result means
Under 36% is generally healthy. 36-43% is workable but leaves little room — new debt will be harder to approve. Above 43% means a conventional mortgage is unlikely until you pay down debt or raise income. Improving your DTI is mostly a matter of either increasing income or paying off high-minimum debts like credit cards.
Frequently asked questions
What is a good debt-to-income ratio?
Below 36% is generally considered healthy. Lenders typically cap conventional mortgage approvals at 43% DTI, though some programs allow up to 50% with strong credit and savings.
Does DTI include rent?
Yes — rent counts as a monthly debt payment when calculating your DTI, since it's a recurring obligation lenders consider.
How do I lower my debt-to-income ratio?
Raise income (side work, raises), pay down high-minimum debts (especially credit cards, which also free up available credit), and avoid taking on new monthly obligations before a mortgage application.
Is DTI the same as credit score?
No. DTI measures your income vs. obligations; credit score measures your repayment history. Lenders use both — a high DTI can block approval even with a great score.
What is the DTI limit for an FHA loan?
FHA typically allows up to 43% DTI, with some lenders accepting up to 50% with strong compensating factors like cash reserves.
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This tool is an estimate for informational purposes only and is not financial advice. Lenders use their own underwriting standards that include credit score, assets, and loan program rules.