Check the ratio lenders use to judge what you can afford.
Your debt-to-income ratio compares what you owe each month with what you earn. Add your payments to see your number, where it lands for lenders, and what a new loan would do to it.
- Based on gross income. Lenders use income before taxes.
- Includes the new loan. Add the payment you are considering to see the after-loan ratio.
- Easy to improve. Paying down small balances can move it quickly.
Written by the Lendli Editorial Team under our editorial policy. Last reviewed .
Debt-to-income calculator
Uses gross (pre-tax) income, as most lenders do.
What counts toward DTI
DTI includes the minimum required payments on debts that show on your credit report, plus housing costs. It does not include everyday living expenses.
In the default example, $2,220 of monthly debt payments on $5,500 of gross income gives a DTI of 40.4%, just above the zone many lenders prefer.
Included
- Rent or mortgage payment
- Auto, student and personal loan payments
- Credit card minimum payments
- Child support or alimony you pay
Not included
- Groceries, utilities and phone bills
- Insurance and subscriptions
- Taxes withheld from your paycheck
Front-end vs. back-end DTI
Mortgage lenders often look at both. Most personal loan lenders focus on the back-end number.
| Type | What it measures | Formula |
|---|---|---|
| Front-end DTI | Housing costs only | Housing payment ÷ gross monthly income |
| Back-end DTI | All monthly debt payments, including housing | All debt payments ÷ gross monthly income |
Ways to lower your DTI before you apply
You can move the ratio by cutting the debt side, raising the income side, or both.
Pay off small balances
Clearing a card or small loan removes its whole payment from the calculation.
Document all income
Include part-time, freelance or other regular income you can verify.
Borrow less or longer
A smaller loan or a longer term lowers the new payment, at a higher total cost.
DTI and your credit score are different
Your credit score does not include your income, so it cannot show your DTI. Lenders calculate DTI separately from your application and documents.
They are related, though. Paying down credit card balances lowers your minimum payments, which improves DTI, and lowers your credit utilization, which can help your score.
Ready to see where you stand?
With your DTI in hand, see which lenders may work with you.