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Debt-to-income ratio

What share of gross monthly income goes to debt payments?

Your numbers

$
$
$

Debt-to-income

36.0%

Total debt payments$2,950
Housing only29.3%

Tip. Under about 36% total is a common comfort zone, though rules vary a lot by loan type.

Assumptions

  • DTI = (housing + other debt) ÷ gross monthly income.
  • Lenders often prefer total DTI under ~36%, but rules vary.

Explore the numbers

Examples and charts

Start with a scenario, then read the response curve to see which input actually moves the answer.

Example 1

Comfortable range

Housing and debt well inside what most lenders like to see.

Debt-to-income

28.7%

Example 2

Typical applicant

A mortgage plus a car payment on a solid income.

Debt-to-income

36.0%

Example 3

Stretched

Past the usual comfort zone, where approvals get conditional.

Debt-to-income

51.2%

Sweeps housing payment from half to one and a half times your value, holding everything else fixed.

Response curve

How housing payment moves the result

Debt-to-income

36.0%

20%25%30%35%40%45%50%$1.5k$2.0k$2.5k$3.0k$3.5k
Chart axis: Housing paymentNow $2.4k → 36%

What this calculates

Measures debt payments as a share of gross monthly income. Lenders use this to size what you can borrow, and households can read it as a pressure gauge.

How to use it

  1. Start with gross monthly income and work down the form, or load an example to begin from a realistic case.
  2. Read the headline result alongside the supporting rows, which show the intermediate figures behind it.
  3. Check the assumptions. They decide what the number includes and, more importantly, what it leaves out.
  4. Sweep housing payment on the response curve to see how much it actually moves the answer.
  5. Run a cautious case as well as an optimistic one before using the estimate in a decision.

Common mistakes

  • Using take-home pay in the denominator when lenders use gross.
  • Leaving out a car loan that is nearly paid off. It still counts until it closes.
  • Assuming the maximum a lender approves is the amount you should borrow.

Formula

DTI = (housing + other debt payments) ÷ gross monthly income

Inputs

  • Gross monthly income
  • Housing payment
  • Other debt payments

FAQ

Is this front-end or back-end DTI?

This is total, or back-end, DTI. Front-end counts housing only, and the result panel shows that separately.

Which payments count as debt?

Payments that appear on your credit report: mortgage or rent, car loans, student loans, minimum card payments, and personal loans. Utilities, groceries, and insurance usually do not.

What DTI do lenders actually accept?

It varies by product and by the rest of your file. Conventional mortgages often sit near 43%, some government-backed programs go higher with compensating factors, and a strong credit score or large down payment buys room.

Why does this use gross income when my budget uses take-home?

Because lenders standardised on gross, and this tool is meant to match what an underwriter will calculate. For spending decisions, use the monthly budget planner instead.

Are these numbers financial advice?

No. They are educational estimates based on the inputs and assumptions on this page. Confirm important decisions with a qualified professional and your own documents.

Read the full guideDebt-to-income ratio guide

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