Debt-to-income calculator
What share of income before tax goes to debt payments.
Fill in the fields and the result will appear here automatically.
Debt-to-income measures monthly debt payments against monthly income before taxes. It compares cash flows for the same month, rather than total debt with annual income. The bands up to 30%, over 30% through 43%, and over 43% are an illustrative scale used by this tool. They do not determine loan approval, budget safety or a particular lender’s limit. The amount left after debt payments still has to cover taxes and other expenses.
How it works
Formula and logic
DTI = monthly debt payments ÷ gross monthly income × 100%. Income must be positive, payments nonnegative, and both amounts in one currency. Remainder = gross income − payments; taxes, rent, food and other costs have not been deducted. The ratio may exceed 100%. The 30% and 43% bands remain as illustrative neutral ranges, without a lending decision.
Example
Payments of 45,000 against income of 150,000 give a DTI of 30%. Zero payments against positive income give 0%; 180,000 / 150,000 gives 120% without a cap at 100%.
Fields and units
- Monthly debt payments — $
- Monthly income before tax — $
How to use
- — Enter total monthly debt payments, not the outstanding debt balance.
- — Enter gross monthly income in the same currency.
- — Read the ratio and illustrative band; the remainder is not a spendable budget yet.
- — For an application, check the lender’s own debt and income definitions.
Method and limitations
- Calculation method
- Formula and logic
- Data or methodology source
- CFPB, United States: monthly debt divided by gross income; lender limits vary
- Limitation
- Debt-payment ratio to income before taxes. Illustrative bands are neither a regulation nor a default-probability estimate. Debt scope, income verification and approval depend on the lender and local rules; taxes and living costs are not modelled.
FAQ
Which payments count?
Regular obligations: loan and mortgage instalments, card minimums, instalment plans. Rent and utilities are usually left out unless your lender includes them.
Is income before or after tax?
This DTI uses income before tax. Dividing by take-home income measures debt payments as a share of the available budget and gives a different percentage: 45,000 / 150,000 = 30%, while 45,000 / 120,000 = 37.5%. Keep the income basis consistent.
Are the thresholds a rule?
No. These illustrative bands do not establish affordability or eligibility. Lenders and loan products use different limits and debt definitions; 43% is not a universal rule.
Why does the ratio exceed 100%?
Payments are larger than income. The calculator shows it rather than clamping, because the situation itself is the answer.