Debt-to-Income (DTI) Ratio Calculator
Divide your monthly debt payments by your gross monthly income to get the DTI ratio lenders look at, plus the housing-only ratio and how far you sit from the 36%, 45% and 50% lines.
Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. On $85,000 a year, gross monthly income is $7,083.33. With $2,780.00 a month in rent, car, student loan and card payments, the ratio is 39.2%, and housing alone is 27.5%. That is $230.00 a month over a 36% limit, with $407.50 of room under 45%.
This calculator computes a ratio from the figures you enter for general education. It is not financial advice, a loan approval or a credit decision, and it is not a substitute for a lender's review. Lenders verify income and debts themselves, may count payments differently, and set their own limits by loan program, so your ratio on an application can differ. For borrowing decisions, talk to a lender or a HUD-approved housing counselor.
Dollars and cents, such as 1,950 or 95.50. Leave a box blank for 0. Living costs such as groceries, utilities and phone bills are not debts and stay out.
Debt-to-income ratio
39.2%
- Housing only (front-end)
- 27.5%
- Monthly debt payments
- $2,780.00
- Gross monthly income
- $7,083.33
- Under a 36% limit
- $230.00 over
- Under a 45% limit
- $407.50 of room
- Under a 50% limit
- $761.67 of room
The 36%, 45% and 50% lines are Fannie Mae's limits for conventional mortgages. Other lenders and loan programs use their own.
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About the Debt-to-Income Calculator
Lenders read debt-to-income two ways. The back-end ratio, the one usually meant by DTI, counts every monthly debt payment: housing, car and student loans, the minimum due on each credit card, personal loans, and support you are ordered to pay. The front-end ratio counts housing alone, meaning rent now, or for a mortgage the full payment with property tax, insurance and any HOA dues. Both are divided by gross income, before tax and payroll deductions, so an $85,000 salary counts as $7,083.33 a month whatever lands in your account. Groceries, utilities, phone plans and insurance you pay outside a mortgage are spending, not debt, and stay out. The 36%, 45% and 50% lines come from Fannie Mae's rules for conventional mortgages: 36% is the ceiling when a loan is underwritten by hand, 45% is allowed with stronger credit scores and cash reserves, and 50% is the top for loans run through its automated system. Government-backed and non-mortgage loans use different limits, so treat the lines as reference points.
Frequently asked questions
How do I calculate my debt-to-income ratio?+
Add every monthly debt payment, including housing, then divide by your gross monthly income and multiply by 100. With $1,500 for a mortgage, $100 for a car loan and $400 for other debts, payments are $2,000; on $6,000 a month that is 33.3%.
What is a good debt-to-income ratio for a mortgage?+
There is no single cutoff. For a conventional loan, Fannie Mae allows up to 36% when a lender underwrites by hand, 45% with stronger credit and reserves, and 50% through its automated system. A lower ratio leaves more room in the monthly budget, and each lender can set stricter limits of its own.
Does rent count in debt-to-income?+
For the ratio you have today, yes: rent is your housing payment. When you apply for a mortgage, the lender usually replaces it with the projected house payment, so enter the expected payment with tax and insurance to see the ratio you would have after buying.
Should I use the credit card balance or the payment?+
The minimum payment on your statement, not the balance and not what you choose to pay. A card you pay off in full each month still has a minimum due on any statement with a balance, and lenders generally use the minimum payment reported on your statement or credit file.
Why does the calculator ask for gross income instead of take-home pay?+
Because that is how the ratio is defined: payments over income before taxes and deductions. Using take-home pay would make your ratio look higher than a lender's figure. If your income varies, lenders often average it over two years, so a two-year average is closer to their number than one strong month.
Definition: Consumer Financial Protection Bureau, What is a debt-to-income ratio? (Ask CFPB 1791). Limits: Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios.
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