Debt-to-Income Ratio Calculator

Use this Debt-to-Income Ratio Calculator to estimate how much of your gross monthly income goes toward housing and recurring debt payments.

Important: DTI is commonly used by lenders when evaluating borrowing ability, but qualification limits and the debts counted can vary by lender and loan type.

Debt-to-Income Ratio Formula

Back-end DTI = total monthly debt payments ÷ gross monthly income × 100

Total debt payments may include the housing payment plus recurring obligations such as credit cards, auto loans, student loans, and personal loans.

The calculator also shows the housing or front-end ratio:

Front-end ratio = monthly housing payment ÷ gross monthly income × 100

If yearly or weekly income is entered, it is converted to a monthly amount before calculating.

Example

Suppose your gross monthly income is $6,000 and your monthly payments are:

• Housing: $1,500
• Auto loan: $300
• Student loan: $200

Total monthly debt = $1,500 + $300 + $200 = $2,000

Back-end DTI = ($2,000 ÷ $6,000) × 100 = 33.33%

Front-end ratio = ($1,500 ÷ $6,000) × 100 = 25%

The estimated back-end DTI is 33.33%, while the housing ratio is 25%.

Important Notes

• Use gross income before taxes and other payroll deductions.
• Enter required recurring debt payments rather than the total outstanding debt balance.
• Mortgage lenders may include taxes, homeowners insurance, mortgage insurance, HOA dues, alimony, child support, and other obligations when calculating DTI.
• Student loans, deferred debts, variable income, and co-signed debts may be treated differently by different lenders.
• There is no single DTI limit that applies to every loan. Lending requirements vary by loan program, lender, credit profile, and underwriting method.
• A DTI below a selected target does not guarantee loan approval or mean a payment is personally affordable after taxes and living expenses.

Sources

• Consumer Financial Protection Bureau — What Is a Debt-to-Income Ratio?
• Fannie Mae — Debt-to-Income Ratios