Finance

Debt-to-Income Calculator

Calculate the share of gross monthly income that goes toward recurring debt obligations.

Last reviewed: April 30, 2026Free toolMethodology

Debt-to-Income Calculator

These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

Debt-to-income ratio is a simple affordability check used in many lending and budgeting conversations because it shows how much income is already committed.

When to use

  • Checking affordability before taking on a new payment
  • Understanding whether debt obligations are starting to crowd out flexibility
  • Benchmarking changes after income growth or debt payoff

Inputs & Outputs

Inputs

  • Monthly debt payments should include recurring required obligations, not optional spending.
  • Gross monthly income is income before taxes and deductions.

Outputs

  • DTI ratio shows the percentage of gross income consumed by debt payments.
  • Income remaining after debt shows the amount left before other living expenses.

DTI formula

Divide total monthly debt payments by gross monthly income and convert the result into a percentage.

DTI = monthly debt payments / gross monthly income

Worked example

1

Affordability check

A household has 2,150 in monthly debt payments and earns 6,800 gross per month.

Inputs

  • Monthly debt payments: 2,150
  • Gross monthly income: 6,800

Steps

  • DTI = 2,150 / 6,800 = 31.62%

Result

  • The debt-to-income ratio is 31.62%.

Edge cases & caveats

  • DTI does not reflect taxes, living expenses, or savings goals.
  • Gross income can overstate spending capacity if variable pay is unstable.

Frequently Asked Questions

Should credit card balances be included?

Include the required monthly payment, not the full balance, unless you are modeling an accelerated payoff plan.

Why is DTI useful but incomplete?

It captures debt burden, but not cash reserves, living costs, or income stability.

Keep going

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