Enter your gross monthly income and your monthly debt payments to see your DTI and how lenders are likely to view it.
A DTI of 36% or below is generally considered healthy and well within typical lending guidelines. Ratios between 37-43% are manageable but sit near the upper limit many mortgage lenders allow, 44-49% is considered high and may make it harder to qualify for new credit, and 50% or above is very high — lenders will likely decline new credit applications at that level.
No — they measure different things. DTI compares your total monthly debt payments to your gross monthly income. Credit utilization compares your credit card balances to your credit limits. Both are commonly used by lenders to assess risk, but a low credit utilization doesn't automatically mean a low DTI, and vice versa.
Loan and credit payments count — rent or an existing mortgage, car loans, student loans, and credit card minimum payments. This tool includes a Rent/Mortgage field since it's commonly relevant for other types of credit applications, but note that if you're applying for a mortgage on a new home, lenders typically exclude your current rent from the calculation since it will be replaced by the new mortgage payment. Groceries, utilities, and subscriptions don't count toward DTI.
Three levers move your DTI: pay down existing balances, avoid taking on new debt, or increase your income. If you're carrying multiple debts and want a structured plan for paying them down, see the Debt Payoff Calculator for a snowball vs. avalanche comparison.
Worked example: with the default figures above — $6,000 gross monthly income and $1,500 + $350 + $200 + $100 + $0 = $2,150 in total monthly debt — the DTI is 2,150 ÷ 6,000 × 100 = 35.83%, which falls in the "Healthy" band.
Lenders usually calculate two figures, and mortgage underwriting cares about both:
On $6,000 of gross monthly income, the 28% front-end guideline gives $1,680 of affordable housing cost. If total monthly debt payments are $2,100, the back-end ratio is 35% — inside the traditional limit, but leaving little room for the housing cost to rise.
Lenders count contractual minimum payments, not what you actually pay. Paying your card in full every month doesn't remove it from the calculation — the minimum on the balance still counts.
Included: mortgage or rent, property tax and insurance where escrowed, card minimums, car loans, student loans, personal loans, child support and alimony.
Excluded: utilities, groceries, phone, insurance paid separately, subscriptions, and anything you could stop paying tomorrow. This is the source of most confusion — DTI measures obligations, not spending, so a low ratio does not mean the budget is comfortable.
DTI uses gross income, before tax and deductions. Your own affordability calculation should use take-home pay instead, which is why a mortgage a lender is happy to approve can still be one you can't comfortably carry. The lender is measuring default risk; you're measuring quality of life. Those aren't the same test.
Because it's a ratio, either side works — but they don't work equally fast. Clearing a small loan with a large monthly payment can drop your DTI noticeably in a single month, while a pay rise takes time to document. If you're preparing to apply for a mortgage, paying off the debt with the highest payment relative to its balance is usually the quickest lever, even if it isn't the highest-interest one.
Avoid taking on new debt in the months before applying. Lenders re-check shortly before completion, and a new car loan at the wrong moment has derailed plenty of otherwise sound applications.
How student loans are counted. If your loans are on an income-driven plan, most mortgage underwriters now use the actual IDR payment shown on your servicer statement rather than a flat percentage of the balance — which means the plan you are enrolled in directly changes the ratio above. Work out what each plan would charge with the student loan repayment comparison before you apply, since switching plans can move your DTI by several points.
Lenders look at this alongside your credit score — here is what actually moves that number. VA lenders apply a residual income test alongside DTI and are often more flexible than conventional underwriting — see the VA mortgage calculator. Know your ratio but not what it means for a purchase? We computed what each debt-to-income ratio actually buys in house prices, and why a 50% DTI approval really consumes 62% of take-home. See also the House Affordability Calculator and the Budget Calculator.