How to Calculate Debt-to-Income Ratio
A simple measure of how much gross monthly income already goes to debt.
What it does and when to use it
Debt-to-income ratio helps describe fixed loan pressure relative to income. It is a planning metric, not a lending decision.
What information to enter
Add recurring loan, credit-card, and debt payments, then divide by gross monthly income.
How to understand the result
A higher ratio leaves less room for unexpected costs or additional borrowing.
Recommended step-by-step workflow
- Check the assumptionsDebt-to-income ratio helps describe fixed loan pressure relative to income. It is a planning metric, not a lending decision.
- Use matching unitsAdd recurring loan, credit-card, and debt payments, then divide by gross monthly income.
- Compare with another scenarioA higher ratio leaves less room for unexpected costs or additional borrowing.
Formula at a glance
DTI = monthly debt payments ÷ gross monthly income × 100
Short example
$2,500 of monthly debt on $10,000 gross income is a 25% DTI.
Common mistakes
- Using net income when the calculator expects gross.
- Leaving out a small but recurring debt payment.
Frequently Asked Questions
Does rent count as debt?
Usually not in basic DTI, but include it in your broader budget.
What ratio is good?
Thresholds vary by lender. Use DTI for comparison, not as an approval promise.
Are my personal inputs saved?
No. The calculators and guides are designed for quick browser use without storing your personal input values.