Question 1

How do I use the DTI Calculator?

Accepted Answer

Enter your gross monthly income (before taxes) in the first field. Then enter the total of all your monthly debt payments—mortgage or rent, car loans, student loans, credit card minimums, and any other recurring debt. Click calculate to see your DTI ratio as a percentage.

Question 2

What is a good DTI ratio?

Accepted Answer

Lenders often prefer a back-end DTI (all debt) of 36 percent or below; some programs allow up to 43 percent. A lower DTI generally improves approval odds and may qualify you for better rates. Front-end DTI (housing only) is often capped around 28 percent. Exact limits depend on the lender and loan type.

Question 3

What counts as monthly debt?

Accepted Answer

Include all recurring debt payments: mortgage or rent, car payments, student loans, credit card minimum payments, personal loans, alimony or child support if required by court, and similar obligations. Do not include utilities, insurance, or non-debt expenses unless they are part of a single debt payment (e.g. PITI for a mortgage).

Question 4

What if my income is zero?

Accepted Answer

If you enter zero for gross monthly income, the calculator cannot compute a meaningful DTI (division by zero) and displays 0. Enter your actual gross monthly income to get an accurate ratio.

Question 5

How does DTI affect mortgage approval?

Accepted Answer

Lenders use DTI to assess whether you can afford a new mortgage payment along with your existing debts. A high DTI may lead to denial or a lower loan amount. Reducing debt or increasing income lowers your DTI and can improve your eligibility. Our mortgage payment calculator can help you estimate a new payment before you apply.