If you’re applying for a mortgage, a car loan, or even a new credit card, your debt-to-income ratio is one of the first things a lender checks, often before they even look at your credit score. Most people have never actually calculated it themselves. This tool does that in about thirty seconds, and tells you what the number actually means for you.
What counts as debt for this calculator
DTI only counts recurring debt obligations: rent or mortgage, car loans, student loans, credit card minimum payments, and things like personal loans, alimony, or child support. It does not include groceries, utilities, insurance, or subscriptions, even though those are real monthly costs, because lenders don’t count them either.
Why 43% isn’t the hard rule you might have heard
A lot of debt advice still treats 43% as a strict cutoff. That was true for a while: the CFPB set a 43% DTI hard cap for “qualified mortgage” status back in 2013. The CFPB removed that hard cap in 2021, replacing it with a price-based standard instead. 43% survives today mostly as an industry rule of thumb, not a regulatory wall.
A 2026 Federal Reserve Bank of St. Louis analysis of over 30 million mortgage applications actually found that lenders don’t meaningfully tighten up until closer to 50% DTI, with denial rates jumping 15 to 17 percentage points past that point. That doesn’t mean 40% or 45% is nothing to think about, just that it’s not the cliff edge it’s often described as.
What to do if your ratio is high
Two levers move this number: increase income, or reduce monthly debt payments. Paying down the debts with the biggest monthly payments (not necessarily the biggest balances) tends to move your DTI the fastest. Our debt payoff calculator can help you build a specific plan for that.
If your ratio is in the high range, it’s also worth talking to a nonprofit credit counselor before applying for new credit. See our list of nonprofit counseling organizations by country.
Frequently Asked Questions
What is a good debt-to-income ratio?
Most lenders and advisors consider a DTI under 36% healthy, though this isn’t a hard cutoff either. Below 36% generally gives you the most flexibility when applying for new credit, since it signals you have room in your budget beyond your current obligations.
Does my DTI ratio affect my credit score?
No, your debt-to-income ratio is not part of your credit score calculation. Credit scores are based on factors like payment history and credit utilization. DTI is a separate number lenders calculate themselves, using your income and your debt payments, when you actually apply for credit.
Should I include my spouse or partner’s income and debt?
Only include your own income and debt unless you’re applying for credit jointly. If you’re applying for a joint mortgage or loan, most lenders will calculate a combined DTI using both incomes and both sets of debt obligations, so you’d want to run this calculator with the combined numbers in that case.
Is gross income or net income used for DTI?
DTI is always calculated using gross monthly income, meaning your income before taxes and other deductions. This is the standard lenders use, and it’s why the calculator above asks for income before tax rather than your take-home pay.