Use this debt-to-income ratio calculator to see how much of your monthly income goes toward debt payments. Lenders and underwriters use DTI to gauge borrowing capacity for mortgages, personal loans, auto loans, and more. A lower ratio generally means stronger affordability.
DTI compares your total monthly debt payments to your gross monthly income.
Formula: DTI (%) = (Total monthly debt payments ÷ Gross monthly income) × 100
Include: housing payment (rent or mortgage), car payment/lease, credit card minimums, personal loans, student loans, and any other fixed monthly obligations.
DTI is a guideline. Approval criteria vary by lender, product, credit profile, and country.
Housing-only ratio around ≤28–31% is often considered healthy (guideline only).
Income: 3,500 per month; Debts: Housing 750, Car 220, Cards 80 → 1,050 total
Overall DTI = 1,050 ÷ 3,500 × 100 = 30%
Housing-only = 750 ÷ 3,500 × 100 = 21.4%
Loan-to-Value (LTV): Loan ÷ Asset value (e.g., property or vehicle).
Housing-only Ratio: Housing payment ÷ Income (front-end view).
Credit Utilization: Used revolving credit ÷ Credit limit (affects credit score, not DTI).
Q: What does a DTI calculator do?
It shows the share of your income used to pay monthly debts, a common affordability metric for lenders.
Q: Is there a single DTI limit for approval?
No. Acceptable ranges vary by lender, product type, credit profile, and regulations.
Q: Do I include everyday expenses like groceries?
No. DTI counts fixed debt payments (loans, credit minimums, housing). Day-to-day living costs are assessed separately by many lenders.
Q: Is DTI the same as credit utilization?
No. DTI compares income vs. monthly debt payments; utilization compares revolving balance vs. credit limit.
Q: Can joint income be used?
Yes—combine incomes if you’re applying together.