How to calculate DTI
Add up your monthly debt payments and divide by your gross monthly income:
- Rent or mortgage (including property tax, insurance and HOA if you own)
- Car loan or lease
- Student loans
- Credit card minimum payments
- Personal loans, child support and alimony
Example: $1,650 rent + $380 car + $220 student loan + $150 cards = $2,400. With gross income of $6,000 a month, DTI = 2,400 ÷ 6,000 = 40%.
What lenders look for
| DTI | How it's usually seen |
|---|---|
| 35% or less | Comfortable |
| 36% – 43% | Manageable; within many mortgage limits |
| 44% – 49% | High; fewer loan options |
| 50% or more | Very high |
Front-end DTI counts housing costs only (often 28% or less is preferred). Back-end DTI counts housing plus all other debt.
How to lower your DTI
Pay off a small debt completely — that removes a whole monthly payment. The debt snowball is built for exactly that. Check your number any time with the free DTI calculator, and see what rent fits your DTI with the rent affordability calculator.
Frequently asked questions
What is a good debt-to-income ratio?
Does DTI use gross or net income?
Does DTI affect my credit score?
Written by
Finance Specialist & Editor, VaultlyApps
Researched against primary US sources and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
