Debt-to-Income Calculator

DTI is the percentage of your gross monthly income that goes toward debt payments. Formula: total monthly debt payments / gross monthly income x 100. If you pay $2,000/month in debts and earn $6,000/month gross, your DTI is 33%. Lenders use DTI to assess whether you can handle additional debt.

For mortgage qualification: under 36% is ideal, 36-43% is acceptable for most lenders, and 43% is the maximum for most qualified mortgages. Under 20% is excellent. For other loans, DTI under 35% is generally favorable. Lower DTI means more room in your budget for new payments and financial flexibility.

Front-end DTI includes only housing costs (mortgage payment, property tax, insurance, HOA). Back-end DTI includes housing costs plus all other debts (car loans, student loans, credit cards, personal loans). Lenders typically want front-end DTI under 28% and back-end DTI under 36-43%.

Include: mortgage/rent, car loan payments, student loan payments, minimum credit card payments, personal loan payments, child support, alimony, and any other recurring debt obligations. Do NOT include: utilities, groceries, insurance premiums, phone bills, or subscriptions — these are living expenses, not debts.

Two approaches: reduce debts or increase income. Pay off small debts completely, refinance to lower payments, consolidate high-interest debt, or increase your income through raises, side work, or a higher-paying job. Even small debt reductions can meaningfully improve your DTI and loan qualification prospects.