Debt-to-Income (DTI) Ratio Calculator

Calculate your true Debt-to-Income ratio in seconds. Combine mortgages, loans, cards, and other obligations with multiple income sources. See monthly versus annual views, front-end and back-end DTI, and lending risk bands. Export results, print a summary, and get actionable tips to lower DTI. Built for accuracy, clarity, and serious financial planning. Compare scenarios, track affordability, and share insights with stakeholders.

Front-end DTI uses only housing payment. Back-end DTI uses total monthly debt.
Income Sources
Label Amount Frequency
$
$
Monthly Debts
Enter required monthly payments (minimums for revolving credit). Mark which row is your housing payment.
Label Monthly Payment Housing?
$
$
$
$
Tip: Keep back-end DTI under ~36–43% for many mortgages.
Results
Gross Monthly Income $0.00
Total Monthly Debt $0.00
Housing Payment $0.00

Front-End DTI (Housing ÷ Income)
0.00%
Excellent — Strong profile. Lenders view this very favorably.
Back-End DTI (Total Debt ÷ Income)
0.00%
Excellent — Strong profile. Lenders view this very favorably.

Quick Tips to Improve DTI
  • Pay down revolving balances to reduce minimums.
  • Consolidate high-interest debt cautiously.
  • Avoid opening new credit before applying for a loan.
  • Increase income (side work, negotiation) if feasible.
Assumptions
Income uses gross amounts and is normalized to monthly. Debts use required monthly payments (minimums for revolving lines). Risk bands are indicative; lenders use additional criteria.

FAQs

1) What is the DTI ratio?

Your Debt-to-Income (DTI) ratio compares your total required monthly debt payments to your gross monthly income. It helps lenders gauge how much additional debt you can realistically manage.

2) How do I calculate DTI with this calculator?

Use the formula: DTI = (Total monthly debt payments ÷ Gross monthly income) × 100%. Enter all required monthly debt payments and your before-tax monthly income; the tool computes the percentage.

3) What counts as “monthly debt payments”?

Include minimum payments on: mortgages or rent obligations, home equity loans/HELOCs, auto loans, student loans, personal loans, credit cards, BNPL/financing plans, alimony/child support (if applicable), and any other required installment or revolving debt payments.

4) Should I use gross or net income?

Most lenders use gross income (before taxes and deductions). If you enter net income, your DTI will appear higher than what lenders typically calculate.

5) What is a “good” DTI ratio?

Lower is better. Many lenders prefer total (back-end) DTI at or below the mid-30% range, may consider up to about 43% in some cases, and sometimes higher with strong compensating factors. Standards vary by lender and loan type.

6) What’s the difference between front-end and back-end DTI?

Front-end DTI includes only housing costs (mortgage/rent, taxes, insurance, HOA). Back-end DTI includes housing plus all other monthly debts. Mortgage decisions usually focus on the back-end DTI.

7) How are student loans treated?

If a required monthly payment is shown on your credit report or statement, use that amount. If payments are deferred or not listed, some lenders estimate a payment (for example a small percent of the balance). Rules vary by program.

8) How do I enter variable or self-employment income?

Lenders often average variable income over 12–24 months. For a quick estimate, enter a conservative monthly average from your recent history. Documentation standards differ by lender.

9) Which expenses are not included?

Exclude discretionary and non-debt expenses such as utilities, subscriptions, groceries, gas, daycare (unless contractually required debt), insurance premiums, and taxes withheld from pay. Only include required debt payments.

10) How can I improve my DTI?

Pay down revolving balances to lower minimums, refinance or consolidate to reduce payments, avoid new debt, increase income (overtime, side work, co-borrower), or extend loan terms cautiously. Always weigh interest costs against lower payments.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.