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Debt-to-Income Ratio Calculator

Calculate your DTI ratio for mortgage and loan qualification.

✅ Reviewed by David Chen, CFA • Last Updated: Nov 2025

Calculator

Gross Monthly Income ($)

Monthly Debt Payments

Mortgage/Rent ($)

Car Payment(s) ($)

Credit Card Min Payments ($)

Student Loans ($)

Other Loans ($)

Results

The "Invisible" Number That Kills Loans

You have a 750 credit score. You have the down payment. But the bank says "Denied." Why? Usually, it's your Debt-to-Income (DTI) ratio. It measures how much of your monthly paycheck is already "spoken for" by debt.

💡 Real Talk from David Chen, CFA

The magic number is 43%. For most qualified mortgages, your total monthly debt payments cannot exceed 43% of your gross income. If you're at 44%, you're out. It's that strict.

Front-End vs. Back-End Ratio

Banks actually look at two numbers:

Front-End Ratio (Housing only): Should be under 28%. This is just your mortgage/rent + taxes + insurance.
Back-End Ratio (Total debt): Should be under 36% (ideal) or 43% (max). This includes housing + cars + credit cards + student loans.

This calculator shows your Back-End Ratio, which is the one that usually trips people up.

⚠️ Common Mistake: Using Net Income

DTI is calculated using your GROSS (before tax) income. If you make $6,000/month but only take home $4,500, use the $6,000 number. Using net income will make your ratio look worse than it actually is.

How to Lower Your DTI Fast

Stuck at 45%? Try these tricks:

Pay off the smallest monthly payment: DTI cares about monthly payments, not total balance. Paying off a $500 credit card with a $25 min payment helps more than paying $500 towards a huge student loan.
Increase income (on paper): Can you include a spouse's income? Alimony? Bonuses (averaged over 2 years)?
Refinance other debt: Lowering your car payment from $500 to $300 improves your DTI immediately.

What Doesn't Count?

Good news! These usually don't count towards DTI:

Utility bills (electricity, water)
Phone/Internet bills
Groceries/Gas
Insurance premiums (unless included in mortgage)

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Reviewed by David Chen, CFA

Chartered Financial Analyst

David helps homebuyers navigate the tricky math of mortgage approvals.

Frequently Asked Questions

What is a debt-to-income (DTI) ratio?

DTI is the percentage of your gross monthly income that goes toward paying debts. It's calculated by dividing your total monthly debt payments by your gross monthly income. For example, if you earn $6,000/month and pay $2,400/month in debt, your DTI is 40%.

What is a good debt-to-income ratio?

Generally, a DTI of 36% or less is considered good. Most qualified mortgages require a DTI of 43% or less. A DTI of 20% or below is excellent and gives you the most financing options with the best rates.

Does DTI include my mortgage/rent payment?

Yes. Your DTI includes all monthly debt obligations: mortgage or rent, car loans, student loans, credit card minimum payments, personal loans, and any other recurring debt payments. It does NOT include utilities, groceries, or insurance (unless bundled into mortgage).