Debt to Income Ratio
Use this calculator to determine your debt to income ratio, an important measure in determining your ability to get a loan.
How the debt to income ratio calculator works
It divides your total monthly debt payments by your gross monthly income to produce the debt-to-income ratio lenders use to judge how much you can safely borrow, and separates out your housing-only ratio.
Worked example: with gross monthly income of $6,500, rent or mortgage of $1,800 and auto loans of $450, the debt-to-income ratio calculator shows your debt-to-income ratio of 42.3%.
- Total monthly debt
- $2,750
- Monthly income
- $6,500
- Front-end (housing) ratio
- 27.7%
- Income left after debt
- $3,750
The formula
DTI = total monthly debt payments ÷ gross monthly income × 100. Front-end ratio uses housing costs alone.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the debt to income ratio
What is a good debt-to-income ratio?
Lenders generally prefer total DTI at or below 36%, with housing alone under 28%. Qualified mortgages usually cap DTI at 43%.
Which debts count in DTI?
Recurring monthly obligations: housing, auto loans, student loans, credit-card minimums and other loan payments. Utilities and groceries are not included.
How can I lower my DTI?
Pay down balances, avoid new debt, or increase income. Even clearing one small loan can move your ratio into a better lending tier.
Is the Debt to Income Ratio free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.