Debt-to-Income (DTI) Ratio Calculator

This professional DTI ratio calculator helps consumers, loan applicants, and advisors evaluate borrowing capacity. Enter your income and monthly debts to compute your back-end DTI, housing (front-end) DTI, and remaining capacity for a new monthly payment against a target limit.

Calculator

Monthly debts

Use minimum required payments. Enter 0 if not applicable.

All values are monthly. You can add custom debts below.
Common benchmarks: 36% (conventional), 43% (QM), program-specific may vary.
Optional: See projected DTI after adding a new loan.
Results update automatically as you type or when you press "Calculate now".

Results

Gross monthly income
Converted from your selected frequency
$0.00
Total monthly debt (incl. housing)
Sum of all recurring obligations
$0.00
Back-end DTI
0.00%
OK
Front-end DTI (housing only)
0.00%
OK
Max additional monthly payment at target DTI
Target: 36%
$0.00
Projected DTI after planned payment
If you add the planned payment above
0.00%

Data Source and Methodology

Authoritative Source: Consumer Financial Protection Bureau (CFPB), “Your debt-to-income ratio,” updated 2024. Direct link: consumerfinance.gov/ask-cfpb/…

All calculations strictly follow the standard definition: monthly debt obligations divided by gross monthly income. For mortgage contexts, common reference thresholds also align with agency guidance (e.g., Freddie Mac Single-Family Seller/Servicer Guide).

All calculations strictly follow the formulas and data provided by these sources.

See also: Freddie Mac guidance, and lender tools such as Wells Fargo DTI Calculator for comparisons.

The Formula Explained

Mathematical formulas

Glossary of Variables

  • Gross Income: Total pre-tax earnings; this tool converts to a monthly figure (GMI) based on frequency.
  • Housing Payment: Monthly rent or mortgage (include taxes/insurance/HOA if applicable).
  • Monthly Debts: Required recurring payments (credit card minimums, auto, student, personal, alimony/child support, etc.).
  • Back-end DTI: Total monthly debts ÷ gross monthly income × 100.
  • Front-end DTI: Housing payment ÷ gross monthly income × 100.
  • Target DTI Limit: Benchmark you choose (e.g., 36%).
  • Max Additional Payment: Your remaining capacity at the chosen limit.
  • Projected DTI: Estimated DTI after adding a planned new monthly payment.

How It Works: A Step-by-Step Example

Scenario: Annual gross income $84,000; housing $1,800; credit cards $150; auto $300; student loans $200; others $0. Target DTI: 36%.

  1. Convert income to monthly: GMI = 84,000 / 12 = $7,000.
  2. Total monthly debts = 1,800 + 150 + 300 + 200 = $2,450.
  3. Back-end DTI = 2,450 / 7,000 × 100 = 35.00%.
  4. Front-end DTI = 1,800 / 7,000 × 100 = 25.71%.
  5. Max additional payment at 36% = 0.36 × 7,000 − 2,450 = $70. Since this is positive, you could add about $70/month without exceeding 36%.

Frequently Asked Questions (FAQ)

What is a good DTI ratio?

Generally, under 36% is considered strong, 36–43% is fair to caution, and above 43% is high risk. Program rules vary.

Does DTI use gross or net income?

Gross (pre-tax) income is used for consistency across applicants and lending programs.

Should I include taxes and insurance in housing?

For mortgages, include principal, interest, property taxes, homeowners insurance, and HOA dues when applicable.

Do I list credit card balances or payments?

List the minimum required monthly payment, not your outstanding balance.

Can I estimate a safe new loan payment?

Yes—set a target DTI and the tool will compute the maximum additional monthly payment that keeps you at or below that threshold.

Are childcare, alimony, or child support included?

Include any recurring, court-ordered, or contractual obligations as monthly debts.

Is this calculator suitable for mortgages only?

No. DTI is widely used across personal loans, auto loans, and credit decisions, though thresholds may differ.