This debt to income calculator divides monthly debt payments by gross monthly income and shows the ratio as a percent. Lenders often call this DTI. Use it to understand how heavy your fixed debts look against income before you apply for new credit.
The tool does not approve or deny loans. Different lenders count debts differently.
Worked example
Example with defaults: debts $1,500 and income $6,000. DTI = 25 percent.
| Input | Value |
|---|---|
| Monthly debt payments | $1,500 |
| Gross monthly income | $6,000 |
| DTI | 25% |
What usually counts as debt
Common inclusions are minimum credit card payments, auto loans, student loans, personal loans, and housing payments when a lender asks for back end DTI. Utilities and groceries are living expenses, not debt payments, in most DTI definitions.
Front end versus back end
Front end focuses on housing costs versus income. Back end includes housing plus other debts. This calculator uses one combined debt total you enter, so build the sum that matches the question you are asking.
Gross income
Use gross pay before tax when that is what the lender requests. Self employed income may need averaged figures from tax returns. Do not invent income.
Commercial lending context
Lower DTI can improve comfort in underwriting conversations, but credit scores, reserves, and loan type still matter. Treat thresholds you read online as examples, not promises.
Related tools: mortgage calculator, loan calculator, and debt payoff calculator.
Common mistakes
- Using take home pay when the form asks for gross
- Leaving out a car payment
- Including one time bills that are not recurring debt
Self employed income
Lenders may average two years of returns. Enter the income figure your lender will actually use, not a single strong month.
New loan payments
When testing a purchase, add the estimated new payment into debts to see the post close DTI.
Cosigned debts
Some programs count cosigned loans even when someone else pays. Ask how your lender treats those lines.
Practical planning tips
Write down the inputs you used so you can repeat the estimate later. Small changes in rate, depth, hours, or price can move the result more than people expect.
When you compare two options, change one variable at a time. That keeps the comparison honest and easy to explain to a partner, client, or lender.
Units and rounding
Keep units consistent across every field. Mixing inches with feet, litres with gallons, or monthly figures with annual figures is the most common source of wrong answers.
Round only at the end for ordering or payments. Early rounding in each step can stack into a surprising gap versus the live calculator.
What this estimate does not include
Taxes, delivery fees, labor, penalties, and one time service charges are often outside the core formula. Add those on paper when you build a real budget.
Local rules, code requirements, and lender overlays can still change the final decision even when the math is correct.
How to double check the result
Recalculate once with a pencil using the same formula shown on this page. If your manual result is close to the tool, your inputs are probably consistent.
If the two answers diverge, check the field labels again before you trust either number for spending or filing.
When to get a second opinion
Large purchases, structural work, medical or legal questions, and loan contracts deserve a qualified human review. Use this page to prepare better questions, not to replace that review.
Save a screenshot or note of the inputs and result date. That record helps when you talk with a contractor, accountant, or lender later.