Debt-to-Income Ratio Calculator
Calculate your front-end and back-end DTI ratio from monthly income and debt payments. See instantly if your debt level is good, ok or too high.
About the Debt-to-Income Ratio Calculator
Your debt-to-income (DTI) ratio is the share of your gross monthly income that goes to debt payments — and it is one of the first numbers a lender checks before approving a home loan, car loan or credit card. This free DTI calculator takes your monthly income, your rent or mortgage payment and a list of other monthly debts (add or remove rows as needed) and computes both ratios lenders use.
The front-end ratio counts only housing costs divided by gross income; the back-end ratio counts all monthly debt payments. As a rule of thumb, a back-end DTI under 28% is comfortable, 28-36% is manageable, 36-43% is a caution zone where approval gets harder, and above 43% most lenders consider the debt load risky. Many mortgage lenders use 43% as a hard ceiling.
Use it before applying for a loan to see how you look to a bank, or to decide whether to pay down existing debt first. All calculations happen in your browser — nothing about your income or debts is uploaded anywhere.
How to Use the Debt-to-Income Ratio Calculator
- 1Enter your gross (before tax) monthly income.
- 2Enter your monthly rent or mortgage payment.
- 3Add a row for each other debt — car payment, personal loan, credit card minimums.
- 4Read your front-end and back-end DTI percentages and the rating band.
Frequently Asked Questions
How do I calculate my debt-to-income ratio with an example?
Divide total monthly debt payments by gross monthly income and multiply by 100. If you earn 150,000 per month and pay 40,000 rent, 15,000 for a car and 5,000 in card minimums, your back-end DTI is 60,000 ÷ 150,000 = 40% — in the caution zone for most lenders.
What is the difference between front-end and back-end DTI?
Front-end DTI counts only housing costs (rent or mortgage, sometimes plus property tax and insurance) against income. Back-end DTI adds all other recurring debt payments. In the example above, the front-end ratio is 40,000 ÷ 150,000 = 26.7% while the back-end is 40%. Lenders traditionally like front-end below 28% and back-end below 36%.
What DTI do I need for a mortgage or home loan?
Most lenders prefer a back-end DTI of 36% or less and often cap approvals at 43%, though limits vary by country and lender. A lower DTI can also earn you a better interest rate, because it signals you have room in your budget for the new payment.
Should I use gross or net income for DTI?
Lenders use gross income — your pay before tax and deductions — so this calculator does too. Keep in mind that a 40% DTI on gross income eats a much bigger share of your take-home pay, so a ratio that looks acceptable to a bank may still feel tight month to month.
Do utilities and groceries count in my debt-to-income ratio?
No. DTI only counts contractual debt payments: rent or mortgage, car loans, student loans, personal loans and minimum credit card payments. Living expenses like electricity, fuel, groceries and phone bills are excluded — which is why a good DTI does not automatically mean a comfortable budget.