How DTI is worked out
The CFPB defines DTI as all your monthly debt payments divided by your gross monthly income. Housing alone, divided by income, is the front-end ratio. Lenders compare both with their limits.
Worked example
With $6,000 gross monthly income and $2,250 of debt payments (a $1,500 mortgage, $400 car, $250 student loan and $100 card minimums), your DTI is 37.5% and your housing ratio 25.0%. That's $90 a month over a 36% limit.
What DTI limit applies?
Limits vary by loan type and lender. 36% is a common guide, with some programs allowing more. There's no single legal cap: since October 2022 the federal Qualified Mortgage rule has used a price test rather than a 43% DTI limit.
What this calculator assumes
Required minimum payments, not balances, and income before tax. Utilities, groceries and insurance not included in your housing payment don't count.
Borrowing in the UK?
The country choices above the inputs open separate local pages. UK lenders cap borrowing as a multiple of annual income, the loan-to-income (LTI) ratio, instead. Choosing United Kingdom opens that page and resets the inputs; amounts are not converted.
For the UK version, use the UK loan to income calculator in pounds.
Inputs for the US debt-to-income calculator
Gross monthly income
Your monthly income before tax and deductions, in US dollars.
Rent or mortgage payment
Your monthly housing payment, including tax, insurance and HOA if you own.
Car loan payments
Monthly auto loan or lease payments.
Student loan payments
Your required monthly payments.
Credit card minimum payments
The minimums due each month.
Other debt payments
Personal loans, child support and other obligations.
Maximum debt-to-income ratio
The limit to test against. 36% is a common guide.
CALCULATOR QUESTIONS
US debt-to-income calculator questions
How do I calculate my debt-to-income ratio?
Add your monthly debt payments and divide by your gross monthly income. $2,250 of debts on $6,000 is 37.5%.
What is a good DTI?
Lower is better. Many lenders look for 36% or less, though some allow more.
What's the difference between front-end and back-end DTI?
Front-end counts housing only. Back-end counts all your debt payments.
Is 43% still the DTI limit for mortgages?
Not as a federal rule. The Qualified Mortgage definition moved to a price-based test, but lenders and programs set their own limits.