Understanding your result
DTI expresses debt payments as a percentage of gross income, before tax and other deductions. The remaining-income figure also uses gross income; it is not disposable income and does not account for food, utilities, tax, or other living costs.
If you have already chosen a manageable principal-and-interest payment, use the Loan Affordability Calculator to estimate the loan amount corresponding to that payment.
The formula
Use monthly amounts for every field. If income is annual, divide it by twelve first. The housing ratio uses only the entered housing obligation, while current DTI includes housing plus the other debt payments. A ratio above 100% is possible and is displayed rather than capped.
Adding one new payment
Gross monthly income of 5,000 with housing of 1,000 and other debts of 500 produces a current DTI of 30%. Adding a 250 monthly payment raises total obligations to 1,750 and DTI to 35%.
How to use this calculator
- Enter gross monthly income on a consistent basis.
- Add the housing obligation and required payments on other debts without counting the same payment twice.
- Enter only the incremental payment you want to test, then compare current and proposed ratios.
Use the obligation definition that fits the application
Lenders may include mortgage principal, interest, property taxes, insurance, association charges, and other obligations under their own rules. Treatment of rent, student loans, support payments, variable income, and jointly held debts can also differ. Confirm the requested definition with the lender rather than assuming this arithmetic replaces underwriting.
If a new loan will replace an existing payment, remove the replaced payment from the current-obligation fields before adding the new one for the proposed scenario. This calculator simply adds the additional payment; it cannot identify refinanced debts automatically.
Assumptions & limitations
What this calculation assumes
- Income and payments are entered for the same monthly period.
- The proposed amount is additional to the obligations already entered.
- Gross income is positive.
What to keep in mind
- No universal approval cutoff or credit assessment is applied.
- The remaining gross income omits taxes and non-debt living expenses.
Common questions
Should I use take-home pay?
The conventional debt-to-income ratio uses gross income. A separate household budget based on take-home pay helps assess actual cash available to spend.
Why is there no good or bad badge?
Lender requirements vary by product and circumstances. Reporting the ratio without a universal approval label avoids implying an eligibility decision.