What is debt-to-income ratio?
The CFPB defines DTI as monthly debt payments divided by gross monthly income. Gross income is generally income before taxes and deductions. Lenders use the ratio as one measure of ability to manage monthly payments.
Use the Home Affordability Calculator to solve a home price from custom ratios, or the Mortgage Calculator for a known property price.
DTI formula
The tool reports housing DTI, current total DTI and total DTI after an optional proposed monthly debt.
What is included
Housing can include principal and interest or rent, property tax, insurance and HOA dues. Non-housing categories include credit-card minimums, auto, student and installment loans, court-ordered obligations and other recurring debt.
Custom target and residual gross income
An optional target shows the monthly room remaining before that entered ratio or the amount already above it. Residual gross income is income minus entered debts, not disposable or take-home income.
Important limitations
- Income and debts are not verified.
- Creditor definitions and treatment can differ.
- Utilities, groceries, taxes, savings and most living expenses are not debt payments in this ratio.
- DTI alone does not determine approval or affordability.