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How to use
Debt-to-income ratio compares recurring monthly payments with gross monthly income before tax. This calculator reports housing-only and total modeled ratios without assigning a universal lending cutoff, because underwriting standards vary by lender, product and jurisdiction.
- Enter gross monthly income before tax.
- Enter housing and other recurring monthly debt payments.
- Review housing ratio, total DTI and modeled payment total.
How it is calculated
Example
With gross income 6000, housing 1500 and other debt 600, the housing ratio is 25% and total DTI is 35%. Gross monthly income 8,000, entered monthly housing payments 2,000 and other debt payments 800 give housing ratio 2000/8000×100=25% and total modeled DTI 2800/8000×100=35%. Use monthly amounts in one currency; do not count housing again in the other-debt field.
Important notes
Which obligations count toward DTI can vary. Use this as a general estimate and check the exact lender definition for a real application. The result is not an approval decision or financial advice.
Worked examples and interpreting results
Gross monthly income 5000, housing payment 1000 and other debt 500 give housing ratio 20% and total debt-to-income 30%. The denominator is income before deductions.
| Case | Calculation | Result |
|---|---|---|
| Housing ratio | 1000 ÷ 5000 × 100 | 20 % |
| Total debt ratio | (1000 + 500) ÷ 5000 × 100 | 30 % |
| Housing 2,000 divided by gross income 8,000 | 2000 ÷ 8000 × 100 | 25 % |
| Housing plus 800 in other debt payments | (2000 + 800) ÷ 8000 × 100 | 35 % |
How to check the result
Enter monthly payments, not full debt balances. The ratio does not decide loan approval; gross income minus debt payments is not necessarily disposable money after taxes and living costs.
Frequently asked questions
Should I use net income?
The formula shown here uses gross monthly income before tax.
Is there one universal DTI limit?
No. Standards vary by lender, product and jurisdiction, so the calculator does not impose one cutoff.
Is housing included?
Housing is shown separately and is also included in the total modeled DTI here.
What is the difference between housing ratio and total DTI?
Housing ratio uses only the housing field; total DTI includes housing plus other debt payments. Both divide by the same gross monthly income.
How do I use annual income in this monthly calculator?
For an estimate, divide gross annual income by 12 and enter the result. For example, 96,000 annually gives 8,000 monthly. A lender may assess variable or irregular income differently.