Debt-to-Income Ratio Calculator
Your debt-to-income ratio (DTI) is one of the first numbers a lender looks at. Enter your income and monthly debts to see yours in seconds.
What’s my debt-to-income ratio?
Lenders compare your monthly debts, including the new house payment, with your income before taxes. Here’s where you stand.
Use the minimum payment for each debt, not what you usually pay. Leave out utilities, phone and insurance bills. These are estimates from the numbers you enter, not a loan offer or a rate quote. Your actual rate, payment and costs depend on your credit, the loan program and the property.
How Lenders Use Your Debt-to-Income Ratio
DTI compares your monthly debt payments, including the new house payment, with your monthly income before taxes. Lenders look at two versions: your housing payment alone, and your housing payment plus all other debts. The total is the one that matters most.
What counts as debt
- Your new house payment, including taxes, insurance, HOA dues and any mortgage insurance
- Car loans and leases
- Student loans, often even when they’re deferred
- Minimum credit card payments
- Child support, alimony and personal loans
What doesn’t count
Utilities, phone bills, groceries, car insurance and other everyday living costs aren’t part of DTI, but they still belong in your budget.
Next, see how much home you can afford or estimate your monthly payment.
Debt-to-Income Questions
What is a good debt-to-income ratio?
Lower is better. Many loan programs work with a total ratio in the mid-40s, and some allow up to about 50% with strong credit or savings. A lower ratio also leaves more room in your budget.
Do deferred student loans count?
Usually, yes. Lenders often count a payment even when loans are deferred, using the amount on your statement or a share of the balance, depending on the loan type. Peter can check how yours would be counted.
How can I lower my DTI before I apply?
Paying off a small balance, avoiding new debt, adding a co-borrower or looking at a lower price can all help. Ask Peter which change would make the biggest difference before you pay anything off.
Is my DTI on my credit report?
No. Your credit report lists your debts but not your income, so the lender calculates DTI from your documents.