⚑ An estimate, not financial advice
This tool provides estimates for educational purposes only and is not financial, tax or legal advice. Lenders use their own underwriting rules. Consult a licensed professional before making borrowing decisions.
$
Before tax — salary, bonuses and other regular income.
$
Rent/mortgage, car, student & personal loans, minimum card payments.
Your DTI ratio
0%
$0Gross monthly income
$0Monthly debt payments
What your DTI means
Your debt-to-income ratio is one of the first numbers a lender checks. It compares everything you owe each month against everything you earn before tax:
DTI = (total monthly debt payments ÷ gross monthly income) × 100
The lower it is, the more room you have to take on new borrowing safely. Lenders sort applicants into rough bands:
- ≤ 36% — Good. Comfortable for most lenders.
- 37–43% — Acceptable, but near the mortgage ceiling. 43% is often the maximum for a qualified mortgage.
- 44–49% — High. Approval gets harder and you should expect extra scrutiny.
- ≥ 50% — Very high risk. Focus on reducing debt before applying.
Use gross (pre-tax) income, not take-home pay, and include rent or mortgage, car payments, student and personal loans, and minimum credit-card payments. Utilities, groceries and insurance premiums are usually left out.
Frequently asked questions
What is a good debt-to-income ratio?
36% or below is generally good; 43% is often the mortgage ceiling; 50% and above is considered very high risk.
How is DTI calculated?
DTI = (total monthly debt payments ÷ gross monthly income) × 100. Include rent/mortgage, loans and minimum card payments, using income before tax.
Does DTI use gross or net income?
Lenders use gross (pre-tax) monthly income, not your take-home pay.
How do I lower my DTI?
Pay down balances (see our debt payoff planner), avoid new debt before applying, or increase your income.
Related tools
Sources: Consumer Financial Protection Bureau (consumerfinance.gov) on DTI and qualified mortgages. Read our full disclaimer →