UltimateTools
Money & Finance

How to Use the Debt-to-Income Calculator

Enter your gross monthly income and each recurring debt payment (mortgage or rent, car loan, student loans, minimum credit card payments) — the calculator totals the debt payments, divides by income, and shows your DTI ratio compared against common lending thresholds like 36% and 43%.

The Debt-to-Income Calculator applies the same formula lenders use — here's what to enter for an accurate result.

Entering income and debt payments

Use gross (pre-tax) monthly income, and include only recurring debt payments as described in the guide on what counts as debt — leaving out everyday living expenses like groceries and utilities, since those aren't part of a standard DTI calculation.

Reading the result against common thresholds

The calculator shows your ratio alongside commonly cited lending thresholds (often around 36% and 43%), giving a sense of where your current debt load falls relative to typical lending standards — useful context before applying for a new loan or mortgage.

Frequently asked questions

Should I include a future mortgage payment I'm considering?

Yes, if you're evaluating whether a new mortgage would push your DTI too high — adding the estimated new payment alongside your existing debts shows the DTI you'd have after taking on that new loan.

Does a lower DTI always mean I'll get approved?

Not necessarily — as covered in the guide on other denial factors, DTI is one of several factors lenders evaluate, so a favorable DTI improves your chances but doesn't guarantee approval on its own.