How to use this calculator
Enter monthly amounts in every field. Use 0 for any debt you do not have.
- Gross monthly income. Your income before tax and other deductions.
- Rent or mortgage. Your monthly housing payment.
- Car payment. Loan or lease payments on vehicles.
- Credit card minimums. The minimum payments due on all cards, not the full balances.
- Student loans. Your required monthly payment.
- Other debts. Personal loans, support payments and any other regular debt payment.
Leave out everyday living costs such as food, utilities, phone bills and insurance. The ratio counts debt payments only.
Worked example
These are the starting values in the calculator above and the results they give. Change any input to see your own numbers.
- Gross monthly income
- $6,500
- Rent or mortgage
- $1,700
- Car payment
- $350
- Credit card minimums
- $120
- Student loans
- $0
- Other debts
- $0
- Debt-to-income ratio
- 33.4%
- Housing ratio
- 26.2%
- Total monthly debt
- $2,170
- Income left after debts
- $4,330
- Rating
- Healthy
How debt-to-income ratio is calculated
The debt-to-income ratio, or DTI, is your total monthly debt payments divided by your gross monthly income, shown as a percentage. If your debts add up to $1,800 a month and your gross income is $6,000, your DTI is 30%.
The calculator also shows:
- Housing ratio. Your rent or mortgage alone, divided by gross income. A $1,500 housing payment on $6,000 of income gives 25%.
- Total monthly debt. The sum of all the payments you entered.
- Income left. Gross income minus total monthly debt. Tax and living costs still have to come out of this figure.
DTI = D ÷ I × 100- DTI
- debt-to-income ratio, as a percentage
- D
- total monthly debt payments
- I
- gross monthly income
How to read the results
The calculator gives your DTI one of three ratings.
| DTI ratio | Rating | What it suggests |
|---|---|---|
| 36% or less | Healthy | Debt takes a modest share of income, with room for savings and surprises. |
| 37% to 43% | Manageable | Debt is under control but leaves less room. New borrowing may be harder to fit in. |
| Above 43% | High | A large share of income is committed to debt. Lenders may see this as a higher risk. |
These bands are common rules of thumb, not fixed rules. Each lender sets its own limits and also looks at credit history, savings and the type of loan.
There are two ways to lower a DTI: reduce monthly debt payments or raise income. Paying off a loan removes its payment from the total. Paying down card balances lowers the minimums.
If you are planning to buy a home, the home affordability calculator uses the same ratios to estimate a price range, and our guide on how much house you can afford explains the thinking behind them.
Frequently asked questions
What is a good debt-to-income ratio?
A common rule of thumb treats 36% or less as healthy, 37% to 43% as manageable and anything above 43% as high. Lower is generally better, because more of your income is free for savings and living costs. Lenders set their own limits, so these bands are a guide and not a guarantee of approval.
How do I calculate my debt-to-income ratio?
Add up all your monthly debt payments, including housing, car loans, credit card minimums, student loans and other debts. Divide that total by your gross monthly income, which is your income before tax. Multiply by 100 to get a percentage. For example, $2,000 of debt payments on $8,000 of gross income is a 25% ratio.
Does debt-to-income use gross or net income?
The standard ratio uses gross income, meaning income before tax and other deductions. That is the figure lenders normally use, and it is what this calculator asks for. Because take-home pay is lower than gross pay, the share of your actual paycheck going to debt will be higher than the DTI figure suggests.
What debts count toward the ratio?
Regular debt payments count: rent or mortgage, car loans, minimum credit card payments, student loans, personal loans and similar obligations. Everyday expenses such as groceries, utilities, phone bills, insurance and subscriptions are usually left out. For credit cards, use the minimum payment due each month, not the full balance you owe.
How can I lower my debt-to-income ratio?
You can reduce the debt side, raise the income side or both. Paying off a loan removes its monthly payment entirely. Paying down credit cards lowers the minimums. Avoiding new borrowing keeps the total from rising. Higher income lowers the ratio even if debts stay the same. Recalculate after each change to track progress.
This calculator gives estimates for education only. It does not know your full situation and is not financial advice. Reviewed and updated November 15, 2026.