Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio — a key figure lenders use when evaluating mortgage and loan applications.
What counts as debt for this calculation
Include recurring debt obligations: mortgage or rent, car loans, student loans, minimum credit card payments, and any other loan payments. Don't include everyday living expenses like groceries, utilities, or insurance — DTI specifically measures debt obligations relative to income, not total spending.
This is 'gross' income (before taxes), not take-home pay — lenders use gross income as the standard basis for this calculation, so make sure you're using pre-tax figures for an accurate comparison to typical lending thresholds.
Why lenders care about DTI
DTI is one of the primary factors lenders use to assess whether you can comfortably take on additional debt — a lower DTI suggests more available income relative to existing obligations, generally translating to easier loan approval and potentially better rates.
Different loan types have different DTI thresholds — conventional mortgages often prefer DTI under 36-43%, though some loan programs allow higher ratios for well-qualified borrowers with strong credit or larger down payments.
Frequently asked questions
What's a good debt-to-income ratio?
Generally, 36% or below is considered healthy by most lenders, 36-43% is moderate and may still qualify depending on the loan type, and above 43% often makes approval more difficult, though thresholds vary by lender and loan program.
Should I use gross or net income for this calculation?
Gross (pre-tax) income is the standard basis lenders use for DTI calculations — using net income would understate your ratio compared to how lenders actually evaluate it.