Debt-to-Income Calculator
Calculate your DTI ratio and see how lenders evaluate your mortgage eligibility.
Your Monthly Finances
Before taxes and deductions
Monthly Debt Payments
Your DTI is within most lenders' acceptable range, but may limit options.
Income Breakdown
DTI Rating Guide
Understanding Debt-to-Income Ratio
- →DTI is one of the most important metrics lenders use to evaluate mortgage eligibility. It tells them how much of your income is already committed to debt.
- →Most conventional lenders prefer a DTI below 43%. FHA loans may accept up to 50% with strong compensating factors.
- →Lower DTI may improve your approval odds, interest rate, and maximum loan amount. Paying down debt before applying can meaningfully improve your position.
- →DTI uses gross (pre-tax) income, not take-home pay. Your actual disposable income after taxes and living expenses is typically much lower.
Learn More
Understanding This Calculator
What this calculator does
This calculator measures your debt-to-income (DTI) ratio — total monthly debt payments divided by gross monthly income — which lenders use to judge loan affordability.
How to use the results
- 1.Enter your gross monthly income (before taxes).
- 2.Add all monthly debt payments (mortgage/rent, cars, student loans, minimum card payments).
- 3.The result is your DTI; under 36% is healthy, under 28% is ideal for a mortgage.
Worked example
$5,000 gross income with $1,400 rent, $300 car, $200 student loan, $150 minimum cards = $2,050 debt. DTI = 41% — above the 36% threshold many lenders prefer.
Important assumptions & limitations
- •Uses gross (pre-tax) income, as lenders do, not take-home pay.
- •Includes only debt payments, not groceries or utilities, for the standard DTI.
- •A 'front-end' DTI (housing only) is also used for mortgages — keep it under 28%.
Frequently asked questions
Learn More About Mortgages and Home Buying
Interested in learning more about mortgages, refinancing, home loans, and the home-buying process? Visit MortgageWizardTools.com for additional beginner-friendly guides and educational resources.
Disclaimer: This calculator is for educational purposes only and does not constitute financial, mortgage, or lending advice. DTI requirements vary by lender and loan type. Consult a qualified mortgage professional for personalized guidance.
Mike Starr
Founder, FinanceWizardTools · M.S. Organizational Management