Debt-to-Income Calculator

The percentage of your gross monthly income that goes toward paying your monthly debt payments. It is a key metric lenders use to determine your ability to repay a loan.

Your total earnings before taxes and other deductions. This includes salary, bonuses, tips, and other regular income sources used as the denominator in the DTI calculation.

Also known as the housing ratio, this calculates the percentage of your income that goes specifically toward housing costs (Principal, Interest, Taxes, and Insurance).

The ratio of all your monthly debt obligations (housing costs plus credit cards, student loans, car loans, etc.) to your gross monthly income. Lenders focus heavily on this number.

Regular financial obligations that must be paid monthly, such as credit card minimums, auto loans, student loans, alimony, and child support. Variable living expenses like groceries are usually excluded.

A standard set by the federal government stating that, in most cases, a borrower's back-end DTI ratio should not exceed 43% to obtain a Qualified Mortgage.

A common guideline suggesting that a household should spend no more than 28% of its gross income on housing expenses and no more than 36% on total debt service.

The amount of credit you are using compared to your credit limits. High utilization increases your minimum monthly payments, which directly increases your DTI ratio.

Acronym for Principal, Interest, Taxes, and Insurance. These are the components of a monthly mortgage payment used to calculate the front-end portion of your DTI.

The amount of net income remaining after all debts and taxes are paid. While DTI looks at gross income, some loan types (like VA loans) also check residual income to ensure affordability.