Debt-to-income ratio calculator

How do I calculate my debt-to-income ratio?

Add up your monthly debt payments and divide by your gross monthly income: $2,000 of payments on $6,000 of income is a 33.3% DTI.

Which payments count as debt?

Rent or mortgage (with taxes and insurance), car loans, student loans, minimum credit card payments, personal loans and child support. Utilities, groceries and insurance premiums usually do not.

Gross or take-home income?

Gross — income before taxes and deductions.

What DTI do lenders want?

Each lender and loan program sets its own limit, and a lower ratio generally makes approval easier. Ask your lender for the limit that applies to you.

What is a front-end ratio?

Housing costs alone divided by gross income. The back-end ratio counts all debts — the calculator shows both. On the example the front-end ratio is 25.0% and the back-end ratio 33.3%.

Is there a legal limit on DTI for a mortgage?

Not a fixed number in the general Qualified Mortgage rule. Regulation Z (12 CFR 1026.43(e)(2)(v)) requires the lender to consider your income or assets, your debts and either your DTI or your residual income, and the general rule’s test on pricing is separate. The limit you meet comes from the lender and the loan program. For example, Fannie Mae’s Selling Guide sets a 36% maximum for manually underwritten loans, up to 45% with the required credit score and reserves, and 50% for loans approved through its automated system.

How can I lower my DTI?

Either shrink the debt payments or raise the income. On the example, paying off the $300 car loan drops the ratio from 33.3% to 28.3%, while adding a new $400 a month payment raises it to 40.0%. To reach 36% with the same payments you would need $5,556 of gross monthly income.

How the ratio is calculated

DTI = total monthly debt payments ÷ gross monthly income × 100. The CFPB describes it the same way: add your monthly debt payments and divide by pay before taxes and other deductions. The page also reports a front-end ratio, which uses the housing payment alone. Fannie Mae’s definition counts the housing expense (principal, interest, taxes and insurance for the home), installment debts with more than ten months left, the monthly payment on revolving debts such as cards, and alimony or child support that continues beyond ten months. Only the required payment counts, not the balance.

Worked example: $6,000 a month

Rent or mortgage $1,500, car loan $300, student loan $150 and card minimums $50 total $2,000. Divided by $6,000 of gross monthly income, that is 33.3%. Housing alone is $1,500 ÷ $6,000 = 25.0%. At a 45% ceiling, the same income could carry total payments of $2,700, so there would be $700 a month of room for a new payment such as a larger housing cost.

Common mistakes

Using take-home pay instead of gross income makes the ratio look worse than a lender would compute it. Leaving out a payment, such as a personal loan or child support, makes it look better, and a lender will verify your debts. Counting living costs that are not debts, such as groceries, utilities or insurance premiums, inflates the ratio. When you are buying, the lender uses the new housing payment in place of your present rent, so test the payment you expect. And do not read a low ratio as approval, because credit history, down payment and the loan program matter too.

Sources: CFPB, What is a debt-to-income ratio? (reviewed August 28, 2023); Fannie Mae, Selling Guide B3-6-02, Debt-to-Income Ratios (April 2, 2025 version): what counts as an obligation and the limits for Fannie Mae loans only; Regulation Z, 12 CFR 1026.43(e)(2)(v) and (vi), on how lenders must consider DTI or residual income for a Qualified Mortgage. See the home affordability calculator, the mortgage calculator and the down payment calculator.

Estimates for planning only — not financial advice. Your lender's figures decide. How we check our calculators.