Your debt-to-income ratio (DTI) compares your monthly debt payments with your gross monthly income. Use this calculator to see your DTI today and how a new housing payment would change it.
How DTI is calculated
DTI = total monthly debt payments ÷ gross monthly income × 100
Gross income is income before taxes and other deductions. Debt payments are the required minimum monthly payments on your obligations, such as auto loans, student loans, credit cards, personal loans, and court-ordered payments like child support. The calculator shows two versions:
- Current DTI: your existing debts only.
- DTI with housing: your existing debts plus the proposed housing payment, including taxes, insurance, and any mortgage insurance or HOA dues. This is sometimes called the back-end ratio.
Example
Gross monthly income is $8,000. Debts are $400 for a car, $250 for student loans, and $100 in credit card minimums, for a total of $750. Current DTI is $750 ÷ $8,000 = 9.4%. Adding a $2,400 housing payment raises total obligations to $3,150, so DTI becomes $3,150 ÷ $8,000 = 39.4%.
What your result means
DTI is one of several things lenders consider. Each lender and loan program sets its own limits, and those limits can depend on your credit, savings, and down payment. A lower DTI does not guarantee approval, and a higher DTI does not automatically mean a denial. Beyond qualifying, it is worth asking whether the payment leaves enough room in your own budget for savings, repairs, and everyday costs.
Ways people lower their DTI
- Paying down or paying off a loan or credit card balance.
- Avoiding new debt, such as a car loan, before applying for a mortgage.
- Choosing a less expensive home or making a larger down payment to reduce the housing payment.
- Including all eligible household income when more than one person is on the loan.
Related tools and guides
This calculator provides estimates for educational purposes only. It does not determine loan eligibility and is not financial advice. See our disclaimer.