CalEstimator

Debt-to-Income (DTI) Calculator

Estimate your DTI and see how paying down or removing debts affects eligibility. Educational only—not credit advice.

Income & Target

Monthly Debts

Current

Current debts

$3,900

Current DTI

39.0%

DTI (selected debts)

39.0%

Target

Max debts @ target

$3,600

Reduction needed

$300

Max new payment @ target

$0

Summary

Current DTI is 39.0% on $3,900 of monthly debts vs $10,000 income. Target DTI 36.0% allows up to $3,600 in monthly debts. You need to reduce monthly debts by ~$300 to hit the target.

Email my calculations

Receive a printable breakdown (PDF) to revisit your calculations later.

DTI budget comparison

See how your debts stack up against common lender targets.

DTI targets & headroom

Debt-to-income targets showing allowable debt, new payment room, and reduction needed at each threshold.
Target DTIMax allowed debtsMax new paymentReduction needed
36%$3,600$0$300
43%$4,300$400$0
45%$4,500$600$0

source: calestimator.com/debt-to-income-calculator

For education only; not credit advice.

How to use the Debt-to-Income Calculator

Quickly compute front-end and back-end ratios so you can see whether lenders will view your debt load as manageable.

  • Enter your gross monthly income.
  • List minimum payments for mortgages, car loans, credit cards, and other obligations.
  • Add the prospective payment you are evaluating, such as a new mortgage or personal loan.
  • Review the resulting ratios and compare them to program limits.

Debt-to-Income Calculator key terms

Knowing how each field influences the results keeps the math grounded in reality.

Front-end ratio

Monthly housing costs divided by gross income. Conventional mortgages prefer this below 28%.

Back-end ratio

All debt payments divided by gross income. Many lenders cap this at 36%–45% depending on credit profile.

Compensating factors

Cash reserves, high credit scores, or large down payments that can offset slightly higher ratios.

Debt-to-Income Calculator planning ideas

Try running a few “what if” scenarios to translate the numbers into real-world decisions.

Eliminate a payment

Model how paying off a credit card or auto loan frees up room for a new mortgage.

Co-borrower income

Add a partner’s wages to see how combined income changes eligibility.

Income volatility planning

Reduce income to simulate parental leave or commission slowdowns to ensure the payment remains safe.

Frequently asked questions

Do lenders use net or gross income?

Most mortgage and auto lenders rely on gross income before taxes. Self-employed borrowers may have additional adjustments, so consult the specific program guidelines.

How can I improve my debt-to-income ratio?

Increase income, pay down revolving balances, or extend the loan term to lower the proposed payment. The calculator helps you weigh each option.

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