About DTI
DTI = (monthly debts ÷ monthly income) × 100. Lower is generally better for affordability. Categories are a rough guide and may vary by lender.
FAQ
What debts should I include in DTI?
Include recurring monthly debt payments such as mortgage or rent, auto loans, student loans, credit card minimums, personal loans, and alimony if relevant. Do not include groceries or utilities unless a lender specifically asks for them.
Should I use gross or take-home income?
Most lender-style DTI checks use gross monthly income before tax. If you are budgeting for yourself, also compare against take-home pay because cash-flow stress can appear even when lender DTI looks acceptable.
What is front-end versus back-end DTI?
Front-end DTI uses housing costs only. Back-end DTI uses housing plus other recurring debts. The back-end ratio is usually the better first screening number for overall affordability.
Why can a lender quote a different threshold?
Loan type, credit profile, reserves, region, and underwriting rules can change the acceptable ratio. Treat this page as a screening calculator, not a loan approval decision.
Does the calculator store my income or debts?
No. Calculations run in the browser. A share URL can encode values only if you choose to copy or share it.
Debt-to-income interpretation notes
Use monthly amounts
DTI compares monthly debt payments with monthly income. Convert annual salary, irregular income, and non-monthly debts before entering them.
Screen before applying
The ratio helps you see whether a new payment may strain borrowing capacity. It does not include credit score, assets, loan-to-value, down payment, or lender overlays.
Compare one scenario at a time
Create a baseline with current debts, then add the proposed housing or loan payment. Changing one payment at a time shows which obligation drives the ratio.
Common mistakes
Do not mix net income with lender thresholds based on gross income. Do not omit minimum credit card payments, co-signed debt, or recurring support obligations if they apply to your underwriting context.
When to seek details
If the result is close to a lender limit, confirm the exact debt definitions, income documentation, and compensating factors with the lender before relying on the ratio.