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Debt & Credit

Debt-to-Income Ratio Calculator

Work out the DTI ratio lenders use to decide if you qualify for a mortgage or loan — and see which band you fall into.

USD

Before tax and deductions — lenders use gross pay, not take-home

Monthly debt payments

USD
USD
USD
USD
Debt-to-income ratio
37%
Total monthly debt
$1,850.00
Income left after debt
$3,150.00
Excellent
20% or less
Good
21 – 36%
Caution
37 – 43%
High
Over 43%

Caution Above the usual 36% comfort level. Many mortgage lenders will still lend up to about 43%, but expect closer scrutiny of the rest of your application.

The 28/36 rule and the 43% ceiling are widely used lender conventions, not legal limits. Individual lenders, loan products, and countries set their own thresholds and differ on which payments they count.

How lenders read your debt-to-income ratio

Your debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income, expressed as a percentage. If you earn 5,000 a month before tax and pay out 1,750 across a mortgage, a car loan, and credit card minimums, your DTI is 1,750 ÷ 5,000 = 35%. It is the single fastest affordability check a lender can run, which is why almost every mortgage, car finance, and personal loan application asks for the numbers behind it.

What counts as debt — and what doesn't

Include contractual monthly obligations: mortgage or rent, car loans and leases, student loans, personal loans, credit card minimum payments, buy-now-pay-later instalments, and court-ordered payments such as child support or alimony. Leave out ordinary living costs — groceries, utilities, phone and internet, insurance premiums, transport, subscriptions, and taxes. Those matter to your budget, but they aren't debts, and lenders assess them separately. For credit cards, use the minimum due rather than the full balance, since that's the amount you're contractually required to pay each month.

The 28/36 and 43% guidelines

Two rules of thumb circulate widely among lenders. The first, often called the 28/36 rule, suggests housing costs stay under 28% of gross income and all debt payments under 36%. The second is a 43% ceiling commonly applied in mortgage underwriting, above which a loan becomes harder to place. Both are industry conventions rather than legal limits: individual lenders, loan products, and countries set their own thresholds, weigh other factors like credit history and deposit size, and disagree about which payments belong in the calculation. Treat the bands here as a well-calibrated sense of where you stand, then confirm the specifics with the lender you plan to approach.

Frequently asked questions

+Should I use gross or net income?

Gross — your pay before income tax, social contributions, and pension deductions. Lenders standardised on gross income because tax and deductions differ so much between people and places that net pay isn't comparable. If your income varies, most lenders average the last 12 to 24 months.

+What DTI ratio do I need to get a mortgage?

There's no universal number, but a widely used convention is to keep total debt payments at or below 36% of gross income, with many mortgage lenders willing to stretch to around 43% and some further when there are compensating factors like a large deposit, strong savings, or a long employment record. Above roughly 43% your choice of lenders and products narrows quickly.

+Does rent count towards my debt-to-income ratio?

For a general affordability check, yes — include it, because it's a fixed monthly housing obligation. When you apply for a mortgage the lender usually swaps your current rent for the proposed new housing payment, including property taxes, insurance, and any service or association charges, since that's the commitment you'll actually be taking on.

+What's the fastest way to lower my DTI?

You can shrink the numerator or grow the denominator. Paying off a small loan entirely removes its whole monthly payment from the calculation, which usually moves the ratio more than making a large lump-sum payment against a big loan. Refinancing to a longer term lowers the monthly payment too, though it raises lifetime interest. On the income side, documented and stable extra income — a second job with a track record, or verifiable freelance earnings — counts; a one-off bonus generally doesn't.

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