How to use it
- Type your monthly debt payments in Monthly debt payments.
- Type your gross monthly income, before tax, in Gross monthly income.
- Read the Debt-to-income ratio and the line under Against the guideline.
- Open Steps of the calculation to see the sum, and read the notes for the guideline figures.
How the ratio is calculated
The debt-to-income ratio, or DTI, sets what you pay each month on debts against what you earn before tax. Lenders use it to judge whether you can manage the payments on a new loan on top of what you already owe.
Only debt payments count. Living costs such as food and bills are not part of the ratio, because the CFPB ratio counts debt payments alone.
DTI = monthly debt payments ÷ gross monthly income × 100
Gross monthly income is your income before taxes and other deductions.- Debt payments: credit card, car, student and other loan payments, and court-ordered payments such as child support.
- Gross income: the money you earn before taxes and deductions, in a typical month.
What the guidelines say
The CFPB guide suggests that homeowners keep the ratio for all debts at 36 percent or less, and that the home mortgage counts in it. For renters it suggests 15 to 20 percent or less, with rent not counted. For a homeowner's mortgage debt alone it suggests 28 to 35 percent. The guide presents these as guidelines to think about.
The CFPB's explainer on the ratio says that loan products and lenders have different DTI limits. A ratio one lender accepts may be declined by another, so the ratio is a planning figure, not a pass or fail mark.
What this calculator does not include
- Living costs and everyday spending, which the ratio does not count.
- Income that changes from month to month. Use a typical month and estimate it low, as the CFPB guide suggests.
- The lender's own checks, your credit history and the terms of the loan you are applying for.
Worked example: 2,000 of debt on 6,000 of income
Monthly debt payments of 2,000 and gross monthly income of 6,000 give 2,000 ÷ 6,000 × 100 = 33.3%. The CFPB's own example gives 33 percent for these figures.
33.3% is at or under the 36% homeowner guideline for all debts. The renter guideline of 15 to 20% is lower, so the same figure would be above it for a renter.
| Amount | |
|---|---|
| Monthly debt payments | 2,000.00 |
| Gross monthly income | 6,000.00 |
| Debt-to-income ratio | 33.3% |
Frequently asked questions
What is a good debt-to-income ratio?
There is no single good number. The CFPB guide suggests 36% or less for all debts for homeowners and 15 to 20% for renters, but it calls these guidelines, and lenders set their own limits.
Does rent count in the ratio?
For renters, no: the CFPB guide says rent is not included in the ratio. For homeowners the home mortgage is included, and the guide gives a separate range of 28 to 35% for the mortgage alone.
Should I use gross or net income?
Use gross income, before taxes and deductions, because the CFPB defines the ratio on gross monthly income. Net pay is lower, so a net figure makes the ratio look higher than the lender's figure.
Can a high ratio stop me getting a loan?
It can make borrowing harder, because a lender wants to know you can repay a new loan on top of what you owe. The CFPB guide notes that some lenders go up to 43% or higher, so the limit depends on the lender.
How can I lower my ratio?
Lower the monthly debt payments, for example by repaying a loan with few payments left, or increase the income you earn. Each debt you repay takes its monthly payment out of the total.
Sources
- CFPB: Debt-to-income calculator, Your Money, Your Goals (guidelines; last modified January 2019)
- CFPB: What is a debt-to-income ratio? (the formula and the lender limits; modified 30 August 2023)
Figures and text last checked on Thursday, November 12, 2026.