Borrowing capacity
Debt-to-Income Ratio Calculator
See how recurring monthly debt compares with gross income, then test a possible housing payment before you apply.
How this DTI calculator works
Debt-to-income ratio is a planning fraction: recurring monthly debt divided by gross monthly income. The CFPB uses the same basic formula in its consumer explanation.
DTI = total monthly debt payments / gross monthly income x 100
The current estimate adds the housing, auto, student loan, credit card, and other recurring payments you enter. The proposed estimate replaces your current housing payment with the proposed housing payment, then divides that new debt total by income.
Worked example
With gross income of $6,500, an auto payment of $425, student loan payment of $180, and card minimums of $150, recurring non-housing debt totals $755. If the proposed total housing payment is $2,100, total listed debt becomes $2,855. The simplified DTI is 43.9% ($2,855 / $6,500).
What this result can and cannot tell you
This is a planning estimate, not a credit decision. Lenders may verify income differently, use a different treatment for debts, include taxes and insurance in a housing payment, consider credit history and assets, or apply program-specific rules. The number is still useful because it forces the full monthly obligation into one view.
For the broader context and common input mistakes, read What is a good debt-to-income ratio?. You can also test the payment side of the plan with the Monthly Budget Calculator and map a payoff option using the Debt Payoff Calculator.
Frequently asked questions
How do I calculate debt-to-income ratio?
Add monthly debt payments, divide by gross monthly income, and multiply by 100.
Does rent count in DTI?
Lender methods vary. This tool lets you include current or proposed housing so you can see a practical total-payment comparison.
Is 43% a required DTI limit?
No. It is a familiar reference point, not a universal approval line. Rules and lender overlays differ.
What is included in the proposed housing payment?
For a home purchase, enter the total monthly payment you expect to carry, including principal, interest, property taxes, homeowners insurance, and required association fees when applicable.
Important note
This page is educational only and is not financial, credit, lending, tax, legal, accounting, insurance, or housing advice. It does not determine eligibility, approval, pricing, or affordability. Verify assumptions and loan requirements with a qualified lender or housing counselor.