Loans and debt guide
How to Calculate Your Debt-to-Income Ratio
Debt-to-income ratio compares monthly debt payments with gross monthly income and can help you organize a loan application.
Use gross income
Start with income before taxes and deductions. Add monthly debt payments the lender may count, including housing and other obligations.
Calculate the ratios
Divide the selected monthly debt total by gross monthly income and multiply by 100. The calculator shows housing debt separately from housing plus other debt.
Understand the limits
Lenders and loan products may use different limits and may count obligations differently. DTI is one factor in a review and does not establish approval.
Worked example
With $6,000 gross monthly income, $1,500 housing debt, and $500 other debt, housing DTI is 25% and total DTI is about 33.3%.
Frequently asked questions
Is DTI the only factor lenders review?
No. Lenders also evaluate other application details under program and underwriting rules.
Do lenders count every debt the same way?
Treatment can vary by loan program and lender; ask how a specific obligation is handled.
Sources and further reading
Try the calculator
Use the Debt-to-Income Ratio Calculator to explore your own numbers with the assumptions shown in the tool.
Related guides
Educational content only; not individualized financial, tax, or legal advice.