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Debt-to-Income Ratio Calculator

Find your debt-to-income ratio, with your housing and total debt percentages.

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Use income before tax. Include minimum debt payments such as car loans, student loans and credit cards. Lenders set their own limits, and this is not a loan decision.

Quick Answer

Your debt-to-income (DTI) ratio is your total monthly debt payments divided by your gross monthly income. With $7,500 income, an $1,800 housing payment and $600 of other debts, your DTI is 32.0% and your housing ratio is 24.0%.

Last updated: 2 November 2026 ·How we calculate this: front-end and back-end ratios

Table of Contents

How This Debt-to-Income Ratio Calculator Works

Lenders use DTI to compare what you owe each month with what you earn. This calculator shows two figures: the front-end ratio covers housing only, and the back-end ratio covers all your monthly debts.

Quick explanation: DTI = total monthly debts ÷ gross monthly income × 100.

  • Income: before tax.
  • Housing: rent, or your mortgage with taxes and insurance.
  • Other debts: minimum payments on loans and cards.

How to Use the Debt-to-Income Ratio Calculator

  1. Enter your gross monthly income, before tax. For a yearly salary, divide by 12.
  2. Enter your monthly housing payment: rent, or mortgage with taxes and insurance.
  3. Add up your other minimum monthly debt payments and enter the total.
  4. Press Calculate.
  5. Compare your front-end and back-end ratios with the 28/36 guide.

Core Formulas

  • Front-end ratio: housing ÷ income × 100
  • Back-end ratio: (housing + other debts) ÷ income × 100

The 28/36 guide suggests keeping housing to 28% and all debts to 36%. It is a guide, and many lenders accept other ratios.

Key Terms

  • Gross income: pay before tax and other deductions.
  • Front-end ratio: housing costs as a share of gross income.
  • Back-end ratio: all monthly debt payments, including housing, as a share of gross income.
  • PITI: principal, interest, taxes and insurance, the parts of a full mortgage payment.
  • Minimum payment: the smallest required monthly payment on a loan or credit card account.

Worked Example

You earn $5,000 a month before tax, pay $1,500 for housing, and $500 on a car and a card.

  • Front-end = 1,500 ÷ 5,000 = 30.0%
  • Back-end = 2,000 ÷ 5,000 = 40.0%
  • Both are above the 28/36 guide

Real-Life Examples

  • Paying off a car loan: with $7,500 income, $1,800 housing and $600 of other debts, DTI is 32.0%. If $400 of that is a car loan you pay off, DTI drops to 26.7%.
  • Before a mortgage application: a $6,000 monthly income and a planned $1,900 house payment plus $350 of other debts gives a 31.7% front-end and 37.5% back-end ratio, just above the 36% guide.
  • Adding a co-borrower: a partner's income is added to yours, along with their debts. A second income often lowers the combined ratio.

Debt-to-Income vs Credit Utilization

  • DTI: monthly debt payments compared with monthly income. Lenders use it to judge whether you can afford a new payment.
  • Credit utilization: card balances compared with card limits. It affects your credit score.
  • Income: your credit score does not use income, but DTI does.
  • Both matter: a strong score with a high DTI, or the other way round, can still limit what you can borrow.

Maximum Monthly Debts by Income

Gross monthly income before tax.

Monthly income28% housing36% total43% total
$3,000$840$1,080$1,290
$4,000$1,120$1,440$1,720
$5,000$1,400$1,800$2,150
$6,000$1,680$2,160$2,580
$7,500$2,100$2,700$3,225
$10,000$2,800$3,600$4,300
$12,500$3,500$4,500$5,375

How to Lower Your DTI

  • Pay down debts: clearing a small loan removes a whole payment.
  • Avoid new debt: especially before applying for a loan.
  • Raise your income: this also lowers the ratio.

Common Mistakes to Avoid

  • Using take-home pay. DTI uses gross income.
  • Counting living costs as debt. Food, utilities and phone bills usually do not count.
  • Leaving out minimum card payments. Lenders count them even if you pay in full.
  • Forgetting co-signed loans. A loan you co-signed may count as your debt.
  • Opening new credit before applying. A new monthly payment raises your ratio right away.

Frequently Asked Questions

Add your monthly debt payments, divide by your gross monthly income, and multiply by 100.

A common guide is 36% or less for all debts, and 28% or less for housing. Lenders set their own limits.

Use gross income, which is your pay before tax.

Housing costs, car loans, student loans, credit card minimums and other regular debt payments. Daily costs like food usually do not count.

Front-end covers housing only. Back-end covers housing plus all other debts.

When you rent, lenders often look at it. When you apply for a mortgage, the new house payment usually replaces rent in the ratio.

Many lenders prefer 36% or less, and some loan programs accept higher ratios with strong credit or savings. Ask lenders about their limits.

Paying off a loan with a small balance removes its whole monthly payment, which often lowers DTI faster than paying a little off a large debt.

Often yes. Many lenders count an estimated payment even if you are not paying right now. Ask your lender how they handle it.

No. Your credit score does not include income, but lenders check DTI separately.

References & Sources

SourceUsed ForLink
Consumer Financial Protection Bureau, What is a debt-to-income ratio Definition of DTI. https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/
Bankrate, What is the 28/36 rule The 28/36 guide. https://www.bankrate.com/mortgages/what-is-the-28-36-rule