Debt-to-Income Ratio Calculator (DTI)

This calculator works out your debt-to-income ratio (DTI): the share of gross monthly income that goes to monthly debt payments. Enter the total of your monthly debt payments and your gross monthly income.

Formula

DTI = monthly debt payments ÷ gross monthly income × 100. Debt payments usually include housing, car, student, personal loan and minimum card payments.

Worked Example

$1,800 of monthly debt payments on $6,000 of gross monthly income.

1. DTI = 1,800 ÷ 6,000 × 100 = 30.0%
2. Income left before tax = 6,000 − 1,800 = $4,200.00

Assumptions

• Gross income is before tax and deductions.
• Which payments count, and what ratio is acceptable, is set by each lender; nothing here says what a lender will approve.

How to read the result

The ratio is a simple share of income. Lenders use it as one input among several and set their own limits.

Limits and common mistakes

• Use monthly figures for both inputs; divide yearly income by 12.
• Living costs such as food and utilities are not debt payments.

Frequently Asked Questions

What is the DTI for $1,800 of debts on $6,000 income?

30%.

Is DTI calculated on take-home pay?

Usually on gross (before-tax) income.

What DTI do lenders accept?

That depends on the lender and the loan; ask the lender.

in d | Monthly debt payments | $ | 1800 | 0 | 10000000
in g | Gross monthly income | $ | 6000 | 0.01 | 10000000
out dti | Debt-to-income ratio | % | d / g * 100 | 1
out left | Income left after debt payments (before tax) | $ | g - d | 2