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Debt-to-Income Ratio Calculator

Enter your gross monthly income, your housing payment and your other monthly debt payments. The calculator shows your debt-to-income ratio, the share of income that goes to housing and where you sit against common lender benchmarks.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

Debt-to-income ratio is your total monthly debt payments divided by your gross monthly income, times 100. Gross income is before tax. Debts usually include rent or mortgage, car loans, student loans, credit card minimums and other loan payments.

With 6,000 of income and 2,160 of debt payments, the ratio is 2,160 ÷ 6,000 = 36%. The housing share is the housing payment divided by income.

Assumptions and limits

  • 36% and 43% are commonly quoted benchmarks. Each lender and loan type sets its own limits, so they are not rules.
  • Use the minimum required payments, not the amount you choose to pay.
  • Everyday costs such as food and utilities are not counted in this ratio.

Frequently asked questions

What is a good debt-to-income ratio?

Lower is better. Many lenders look for a total ratio at or below 36%, and some accept up to 43% or more, depending on the loan. Treat these as benchmarks and check with your lender.

What counts as debt in this calculation?

Your housing payment and recurring debt payments, such as car, student and personal loans and the minimum on credit cards. Utilities, groceries and insurance are normally left out.

How can I improve my ratio?

Pay down debts with the highest monthly payments, avoid new loans before applying for credit, or increase income. Paying off a loan removes its whole monthly payment from the total.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Gross monthly income ($) = 6000; Rent or mortgage payment ($ per month) = 1500; Other debt payments ($ per month) = 660.

  • Total debt-to-income ratio 36%
  • Housing share of income 25%
  • Total monthly debts $2,160.00
  • Where you land At or below 36%

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.