Debt-to-Income Calculator
Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments, and lenders lean on it heavily when deciding how much you can borrow. This calculator divides your total monthly debt obligations by your monthly income to produce that percentage, grades it against common lending thresholds, and shows the maximum debt payment that would keep you at the widely used 36% benchmark. It is a fast read on how much borrowing headroom you have.
Formula
DTI = (Monthly debts / Monthly income) × 100; Recommended max = income × 0.36
- Monthly debts
- Sum of all recurring monthly debt payments
- Monthly income
- Gross monthly income before taxes and deductions
- DTI
- Debt-to-income ratio as a percentage
- Recommended max
- Debt payment that keeps DTI at the 36% benchmark
How it works
- Enter your gross monthly income (before tax) and the total of your monthly debt payments, such as loans, credit-card minimums, and housing costs.
- The DTI ratio is your monthly debts divided by monthly income, expressed as a percentage and rounded to two decimals.
- That percentage is rated Good (under 36%), Acceptable (36–42.99%), High (43–49.99%), or Very High (50%+), and the tool also reports the 36% recommended maximum debt payment for your income.
Worked example
A household with $6,000 gross monthly income and $1,500 in total monthly debt payments.
- DTI: 1,500 ÷ 6,000 × 100 = 25%.
- Because 25% is below 36%, the rating is Good.
- Recommended max debt at 36%: 6,000 × 0.36 = $2,160 per month.
The DTI is 25% (rated Good), with room to carry up to about $2,160/month in debt before reaching the 36% benchmark.
Frequently asked questions
- What is a good debt-to-income ratio?
- A DTI under 36% is generally considered healthy and is rated Good here. From 36% to 43% is acceptable to many lenders, 43% to 50% is high, and 50% or more is very high and can make new borrowing difficult.
- Should I use gross or net income?
- Use gross monthly income — your pay before taxes and deductions — because that is what lenders use to compute DTI. Entering take-home pay would overstate your ratio.
- Which debts should I include?
- Include recurring debt obligations such as mortgage or rent, auto and student loans, and minimum credit-card payments. Everyday expenses like groceries, utilities, and subscriptions are typically left out of the DTI calculation.
- Why do lenders care about DTI?
- DTI signals how much of your income is already committed to debt and therefore how comfortably you could take on more. A lower ratio suggests more capacity to repay, which is why mortgage and loan approvals often hinge on staying under a target threshold.