Debt-to-income ratio calculator

Your debt-to-income ratio is the first number a lender checks — and a fast read on whether your debt is comfortable, stretched, or out of reach of a new loan. This calculator works out both your back-end DTI (all debt) and front-end DTI (housing only), against the standard 28/36 guideline and the 43% benchmark, then gives you an honest next step based on what kind of debt you actually carry. Everything runs in your browser; we never see or store your numbers.

How the ratio works

Debt-to-income is deliberately simple: total monthly debt payments ÷ gross monthly income. "Gross" means before taxes — the same figure on your pay stub that a lender pulls. The payments side counts your minimums: rent or the full mortgage payment, the car, student loans, the minimum due on each credit card, personal and medical loan payments, and any court-ordered support. It does not count utilities, groceries, or insurance you pay on your own — only debt.

Lenders read two versions. The front-end ratio is just housing over income; the back-end ratio is every debt over income, and it's the one that usually decides an approval. The classic 28/36 rule says keep housing under 28% and all debt under 36%. For mortgages, 43% is the figure many lenders treat as an upper limit, with the best rates reserved for borrowers comfortably under 36%.

What your number means — and the honest next step

A low DTI keeps your options open: you'll qualify for the widest set of loans at the best rates. As the ratio climbs, new credit gets harder and more expensive — and past a point, borrowing your way out stops working. The right move depends less on the headline number than on what kind of debt is driving it.

If your ratio is high because of unsecured debt — credit cards, medical bills, personal loans — a consolidation loan may lower the payment while you can still qualify, a nonprofit debt management plan can cut interest without a new account, and for balances you truly can't repay, debt settlement may reduce what's owed (though it isn't guaranteed, can lower your credit score, and a forgiven balance over $600 may be reported on a 1099-C as taxable income). But if your DTI is high because of a mortgage, auto loan, student loans or child support, those debts can't be settled and shouldn't be rolled into a high-interest loan — the honest paths there are repayment plans, a budget reset, or a hardship arrangement. The tool routes you accordingly rather than pushing one answer.

Frequently asked questions

What is a debt-to-income (DTI) ratio?

Your DTI is the share of your gross (pre-tax) monthly income that goes to required debt payments. You add up your monthly debt payments — housing (rent or mortgage), auto, student loans, the minimum on each credit card, personal or medical loans, and any court-ordered support — then divide by your gross monthly income. Lenders use it to gauge how much more debt you could handle. The 'back-end' DTI counts all of that debt; the 'front-end' DTI counts only housing.

What is a good debt-to-income ratio?

A common guideline is 28/36: no more than 28% of gross income on housing (front-end) and no more than 36% on all debt (back-end). Many lenders, especially for mortgages, look for a back-end DTI of 43% or lower, with the best terms going to borrowers well under 36%. Above roughly 43% you'll find fewer lenders and higher rates; above 50%, new borrowing is rarely the answer. These are reference points, not hard rules — each lender sets its own limits and also weighs your credit, assets, and the loan type.

Does DTI include rent and utilities?

DTI includes rent or your full mortgage payment (with escrowed property tax, insurance and HOA), but it does not include utilities, groceries, phone bills, insurance you pay separately, or taxes. It counts debt obligations — loans and court-ordered payments — using the minimum required payment, not the balance. That's why paying more than the minimum doesn't lower your DTI, but paying a balance off entirely does.

How do I lower my debt-to-income ratio?

There are only three levers: pay a debt off so its payment disappears (paying down a balance without closing it doesn't help your DTI, since the minimum stays), raise your gross income, or — carefully — replace several payments with one lower payment through a consolidation loan or a nonprofit debt management plan. For unsecured balances you genuinely can't repay, debt settlement can reduce what's owed, though it isn't guaranteed, can hurt your credit, and a forgiven balance over $600 may be taxable. A high DTI driven by a mortgage, auto loan, student loans or child support is handled very differently and can't be 'settled'.