How the DTI calculator works
Type in your gross monthly income and every debt payment — credit cards, auto and student loans, alimony, and other recurring debt. The calculator adds them up, divides by your income, and turns the result into a percentage: your DTI.
It then adds the payment on the loan you're considering, so you see your DTI before and after — the exact shift a lender will notice.
Worked example: a $400 payment moves DTI from 24% to 32%
Say you earn $5,000 a month and already pay $1,200 toward a car loan, a credit card, and a student loan. Your DTI is $1,200 ÷ $5,000 = 24% — comfortably inside most lenders' limits.
Add a $400 payment and debts become $1,600 — a DTI of 32%. One loan moved you eight points closer to the 43% ceiling, which is why this math is worth doing first.
What to watch out for
Use gross income — your pay before taxes — because that's what lenders use. Count minimum payments, not the higher amounts you actually pay; DTI measures obligation, not effort.
A clean DTI doesn't guarantee approval. Lenders also weigh credit history, income stability, and the loan's purpose. Treat this as a fast estimate, not financial advice.
Frequently asked questions
What is a good debt-to-income ratio?
Most lenders like to see a DTI under 36%, with no more than 28% going to housing. Up to 43% can still qualify for some loans, including many mortgages. Above 50%, approval gets difficult, though not impossible with strong credit or extra collateral.
Does DTI include rent and utilities?
Lenders count housing costs — rent or your proposed mortgage payment — plus minimum debt payments. Everyday bills like utilities, groceries, insurance, and taxes usually don't count, unless they're part of a court-ordered obligation like child support.
Can I get a loan with a high DTI?
Possibly, but your options shrink. Some lenders accept DTIs above 43% if your credit is strong, your income is stable, or you bring a co-signer or collateral. Expect higher rates, smaller loan amounts, or extra documentation requirements.
How can I lower my DTI quickly?
Pay down credit card balances to cut minimum payments, avoid new debt before applying, and consider a longer loan term to shrink the monthly payment you're adding. A raise, a second income source, or paying off a small loan entirely also moves the ratio down.