Debt-to-Income Ratio Calculator – See Your DTI the Way a Lender Does
Your debt-to-income ratio (DTI) is the share of your monthly income that goes to debt payments. It is one of the first numbers a lender checks on a mortgage or loan application. This DTI calculator works out your housing ratio and total DTI, places them against the lender benchmark you choose, and shows how much room is left: the largest housing payment, the largest new payment and the income that would still fit.
Front-end vs back-end DTI
The front-end ratio (housing ratio) is your housing payment divided by income. The back-end ratio (total DTI) adds every other monthly debt payment. Take a gross income of $90,000 ÷ 12 = $7,500 a month, a housing payment of $2,070 (principal and interest, property tax and insurance) and $825 of car, student-loan and credit-card payments:
- Housing ratio:
2,070 ÷ 7,500 = 27.60% - Total DTI:
(2,070 + 825) ÷ 7,500 = 38.60%
Under the 28/36 rule the housing ratio fits, but the total is 2.60 points over 36%, about $195 a month more debt than that income supports. Paying off the car loan alone would bring the total to 32.60%.
Reading the income bar
The bar is your whole monthly income. Housing and each debt take a slice from the left, and the outlined part on the right is what is left after debts. Vertical lines mark the benchmark's limits; the solid one is your target. The coloured strip under the bar shows where the standard limit ends and where higher tiers begin, so you can see at a glance which payment takes the biggest bite.
What counts as debt
Lenders count housing, car loans and leases, student loans, credit-card minimum payments, personal loans, other mortgages or HELOCs, court-ordered support and loans you co-signed. Utilities, groceries, phone bills, insurance premiums, subscriptions and taxes are living costs, not debts, so they are left out.
Why lenders' limits differ
Each loan program sets its own ceiling, often with higher tiers for borrowers who have strong credit, cash reserves or other compensating factors:
| Benchmark | Housing / total |
|---|---|
| 28/36 rule of thumb | 28% / 36% |
| Conventional (Fannie Mae) | — / 36%, 45% or 50% (DU) |
| FHA manual underwriting | 31/43, 37/47, 40/50 |
| VA | — / 41% guideline |
| USDA | 29/41, 32/44 with a waiver |
| Canada CMHC (GDS / TDS) | 39% / 44% |
You will still see 43% quoted everywhere. It was the DTI cap for a General Qualified Mortgage under the CFPB's Ability-to-Repay rule until the 2020 General QM final rule replaced it with a price-based test; compliance with the new definition became mandatory on 1 October 2022.
FOIR in India and GDS/TDS in Canada
Indian banks use FOIR (fixed obligations to income ratio): all EMIs, including the new home-loan EMI, divided by take-home pay. There is no regulatory cap; 40–60% bands are commonly quoted and each bank sets its own. Canada uses GDS and TDS, which count heating and half of condo fees but not home insurance, and qualify you at a stress-test interest rate.
How to lower your DTI
- Pay off the debt with the biggest contribution, or the smallest balance that clears enough.
- Increase documented income, or add a co-borrower whose income a lender can verify.
- Choose a smaller housing payment: a lower price, a larger down payment or a longer term.