Debt-to-Income Calculator
Find your debt-to-income ratio, the number lenders use to judge new loans.
Your answer
Turn on JavaScript to use this calculator. The formula is explained below so you can work it out by hand.
How this calculator works
Your debt-to-income ratio, or DTI, is all your monthly debt payments divided by your gross monthly income.
DTI = total monthly debt payments ÷ gross monthly income × 100
Lenders often look at two versions:
- Housing ratio (sometimes called front-end): just your rent or mortgage payment divided by gross income.
- Total DTI (back-end): every monthly debt payment, including housing, divided by gross income.
Count required monthly payments on debts. Everyday bills like groceries, utilities, phone, and insurance premiums (other than homeowners insurance built into a mortgage payment) usually aren't included. Different loan products and lenders set different DTI limits, so check with the lender you're considering.
Example
You earn $6,000 a month before taxes. Your rent is $1,500, your car payment is $350, and your credit card minimums are $150, for $2,000 in monthly debt payments.
$2,000 ÷ $6,000 × 100 = 33.3% DTI. Your housing ratio is $1,500 ÷ $6,000 = 25%.
Category: Personal Finance