Debt-to-Income Ratio Calculator
Lenders use your debt-to-income ratio to decide whether to approve a mortgage, refinance, or large personal loan. Under 36% is the comfortable zone, 36 to 43% is acceptable, above 43% gets tight. Enter your numbers and see where you land.
Most lenders consider this low risk. Mortgage qualification is straightforward.
How to use it
- 01.Enter your gross monthly income — that means before taxes and deductions. Include all stable income: wages, salary, side income that you have been receiving consistently, alimony or child support if applicable.
- 02.Enter your total monthly debt payments. Include rent or mortgage, auto loan payment, student loan payment, minimum credit card payments. Do not include utilities, groceries, gas, or other variable expenses.
- 03.Read the ratio. Lender thresholds: 36% is the conservative cutoff, 43% is the conforming-mortgage cap for most lenders, anything higher signals real risk to underwriters.
The method, briefly
Debt-to-income ratio is simply your total monthly debt obligations divided by your gross monthly income, expressed as a percentage. Most lenders look at two versions: front-end DTI (just housing payment over income) and back-end DTI (all debt payments over income). The calculator above computes back-end DTI, which is the number most consumer lenders care about. The 36% and 43% thresholds come from Fannie Mae and Freddie Mac conforming-loan guidelines that most U.S. mortgage lenders follow.
Frequently asked questions
What is a good debt-to-income ratio?
Under 36% is considered healthy by most lenders. 36 to 43% is acceptable but mortgage approval gets stricter. Above 43%, conventional mortgage underwriting typically declines or requires compensating factors like a large down payment or significant savings.
Should I count my current credit card balance or just the minimum payment?
Just the minimum payment. DTI is about monthly cash flow commitments, not the underlying balances. A $20,000 credit card with a $400 minimum counts as $400 per month against DTI, not $20,000.
Why do lenders care so much about this?
DTI is the simplest predictor of whether you can absorb a new monthly payment. If you are already at 45% DTI and a new mortgage would push you to 60%, the lender sees real risk of default if any expense category increases or income drops temporarily.
How do I lower my DTI?
Two ways. Increase the numerator (pay off some debt, even just one card) or increase the denominator (raise gross income through a raise, side income, or a documented bonus). Paying off the smallest debt — or a card with the highest minimum-payment-to-balance ratio — gives the biggest DTI improvement per dollar.
Does my mortgage payment count in DTI?
Yes. Mortgage principal + interest + taxes + insurance + HOA all count as part of monthly debt obligations. If you do not yet have a mortgage and are calculating to see if you qualify, include the proposed mortgage payment in your debt total to see your post-mortgage DTI.
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