Debt-to-Income Ratio Calculator
The Debt-to-Income Ratio Calculator divides your total monthly debt payments by your gross monthly income — a number mortgage and loan lenders use to assess borrowing risk. The calculator sorts your result into four bands drawn from common lending guidance: 20% or below is labeled Excellent, 20–36% Good, 36–43% Moderate, and above 43% High and likely to limit approval — though individual lenders and loan programs set their own exact cutoffs. Because the formula divides by gross (pre-tax) income rather than take-home pay, your DTI will read lower than a percentage calculated against your actual paycheck, which is intentional since that's the convention lenders use. It also treats all debt equally — a mortgage payment carries the same weight as a credit card minimum — so two people with an identical DTI percentage can have very different real repayment burdens depending on their debt mix.
How This Tool Works
Enter your total monthly debt payments (rent/mortgage, car loans, credit cards, student loans) and your gross monthly income to calculate your DTI ratio.
Formula & Method
DTI (%) = (total monthly debt payments ÷ gross monthly income) × 100.
Example Calculation
Someone with a $1,800 mortgage payment, $350 car payment, $200 minimum credit card payment, and $500 student loan payment has $1,800 + $350 + $200 + $500 = $2,850 in total monthly debt. On a $7,500 gross monthly income, DTI = ($2,850 ÷ $7,500) × 100 = 38% — landing in the "Moderate" tier, above the 36% preferred threshold but under the 43% cap most qualified mortgages allow.
Frequently Asked Questions
What is a good debt-to-income ratio?+
A DTI at or below 36% is generally considered healthy by lenders, with 43% often the maximum for qualifying mortgages.
What counts as debt for this calculation?+
Include all recurring debt obligations: mortgage or rent, car loans, minimum credit card payments, student loans, and other loan payments. Everyday expenses like groceries and utilities are not included.
Does DTI affect my credit score?+
DTI isn't directly part of your credit score, but lenders use it alongside your credit score to evaluate loan and mortgage applications.
Should I include the new mortgage payment I'm applying for in my monthly debt total?+
This calculator only divides whatever total monthly debt figure you enter — it doesn't add anything automatically. If you're checking affordability for a home purchase, add your estimated new mortgage payment to your existing debts before entering the total, or use the Home Affordability Calculator, which factors that in for you against the 28/36 rule.
How exactly are the Excellent/Good/Moderate/High ratings determined?+
A DTI of 20% or below is labeled Excellent, 20–36% Good, 36–43% Moderate, and anything above 43% High. These bands reflect the widely used guidance that 36% is a comfortable ceiling and 43% is the common maximum for qualified mortgages, but they're general benchmarks, not a rule every lender applies identically.
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<a href="https://everyfix.net/tools/debt-to-income-ratio-calculator/">Debt-to-Income Ratio Calculator</a> by <a href="https://everyfix.net">EveryFix</a>Related Tools
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