MayoCalc / Finance

Debt-to-Income Ratio Calculator

Find out your DTI ratio and whether lenders will approve you for a mortgage or loan.

Last updated April 2026

Monthly Income (Before Taxes)

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Monthly Debt Payments

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Your Debt-to-Income Ratio
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Total Monthly Debt
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Total Monthly Income
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Disclaimer: This calculator is for general educational and informational purposes only. It does not constitute financial advice, investment advice, tax advice, or legal advice and is not a substitute for consultation with a qualified professional. No fiduciary or advisory relationship is created by your use of this tool. Results are estimates based on the inputs you provide, standard mathematical formulas, and publicly available data that may not be current and may not reflect your individual financial situation, applicable tax laws, or other relevant factors. Neither MayoCalc nor Cook Media Systems assumes any liability for losses, damages, or other consequences arising from the use of any information or results provided by this tool. Always consult a qualified financial advisor, certified public accountant, or attorney before making financial decisions. See our full Disclaimer and Terms of Service.

What Is Debt-to-Income Ratio?

Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments. Lenders use it as a primary indicator of your ability to manage monthly payments and take on additional debt. DTI is one of the most important numbers in mortgage qualification, often as important as your credit score.

DTI = Total Monthly Debt Payments / Gross Monthly Income x 100

How to Use This Calculator

Enter your gross monthly income (before taxes) and all monthly debt payments, including mortgage or rent, car payments, student loans, credit card minimums, personal loans, and any other recurring debt obligations. The calculator shows your DTI percentage and rates it against standard lender thresholds.

DTI Thresholds

Under 36%: Good. Most lenders consider this a healthy DTI. You have room for additional debt if needed. 36-43%: Acceptable for most mortgage programs but may limit your options. 43%: The maximum for most qualified mortgages (QM) under federal guidelines. Over 43%: Difficult to qualify for new credit. Focus on paying down existing debt before taking on more. For the best mortgage rates and terms, aim for a DTI under 36% with no more than 28% going to housing costs specifically.

DTI Calculator FAQ

What counts as debt for DTI?
Include: mortgage/rent, car loans, student loans, credit card minimum payments, personal loans, child support, and alimony. Do not include: utilities, insurance premiums, groceries, subscriptions, or other living expenses. DTI only counts formal debt obligations that appear on your credit report.
How do I lower my DTI?
Two approaches: increase income (side job, raise, freelance work) or decrease debt payments (pay off a card, refinance to a lower payment, consolidate). Paying off a credit card is often the fastest way to improve DTI because it completely removes that payment from the calculation.

Why Your DTI Ratio Matters

Debt-to-income ratio (DTI) is one of the most important numbers in personal finance because it directly determines your borrowing capacity. Mortgage lenders use two DTI measurements: the "front-end ratio" (housing costs divided by gross income, ideally under 28%) and the "back-end ratio" (all monthly debt payments divided by gross income, ideally under 36%). Conventional mortgages typically require a back-end DTI under 43%, while FHA loans allow up to 50% with compensating factors.

Your DTI matters beyond mortgages. Credit card issuers, auto lenders, and landlords all consider debt burden when evaluating applications. A DTI above 40% signals financial stress to lenders and reduces approval odds and rate offers. To lower your DTI, you can either reduce debt (focusing on the highest monthly payment obligations first) or increase income. Refinancing high-rate debt to lower monthly payments also improves DTI even if total debt remains the same.

What Counts in Your DTI

Monthly debts that count toward DTI include: mortgage or rent, minimum credit card payments, auto loan payments, student loan payments, personal loans, child support, and alimony. Debts that do not count include: utilities, insurance premiums, phone bills, subscriptions, and groceries. Student loan DTI calculations follow specific rules: for income-driven repayment plans, lenders typically use the actual IDR payment amount rather than the standard repayment amount. The Loan Payoff Calculator helps model payoff strategies to reduce your DTI.

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What Lenders Look For

Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes to debt payments. Mortgage lenders typically want your total DTI below 43%, with the best rates reserved for borrowers under 36%. Auto lenders are slightly more lenient, usually capping at 40-45%.

The calculation is straightforward: add up all monthly debt payments (mortgage/rent, car loans, student loans, credit card minimums, personal loans) and divide by your gross monthly income. A $6,000/month income with $2,000 in debt payments gives you a 33% DTI. This calculator does the math and tells you where you stand for different types of lending. Your credit score is the other number lenders care about.