Calculate your DTI ratio with monthly debt obligations and gross income to assess mortgage qualification and lending eligibility.
This calculator expresses your stated monthly debt payments as a percentage of gross monthly income. Enter income before taxes and deductions, plus the required monthly debt payments you want included. It totals those obligations and divides them by gross income to produce a DTI percentage. The common mistake is using take-home pay, which makes the ratio look higher and prevents a like-for-like comparison with the standard DTI definition.
A concrete input and expected output from the current implementation.
Input
Gross monthly income: $5,000 Monthly debt obligations: $1,500
Expected output
Total monthly debt: $1,500 Debt-to-income ratio: 30%
$1,500 divided by $5,000 equals 0.30. Multiplying by 100 converts that value to a 30% DTI ratio.
The calculator adds the entered monthly debt obligations, divides their total by gross monthly income, and multiplies the quotient by 100. For example, ($1,500 / $5,000) x 100 equals 30%. The result measures how much of gross monthly income is represented by the entered debt payments, not how many dollars remain after other expenses.
Income and debt values must cover the same monthly period. Convert annual gross income to a monthly figure before entering it, normally by dividing by 12. Do not enter an outstanding loan balance where a monthly payment belongs. Irregular income also needs a defensible monthly amount, since the calculator cannot determine how a lender will average it.
No. The result is one ratio derived from the amounts entered, not an approval decision. Lenders may also consider credit history, available funds, employment and income documentation, the requested loan, and their own underwriting requirements. The calculator can help assess a scenario, but it cannot determine eligibility or promise a particular rate.
Enter gross monthly income, meaning income before taxes and payroll deductions. If you have an annual gross figure, dividing it by 12 provides a simple monthly amount. That conversion may not match a lender's treatment of bonuses, commissions, seasonal work, or other variable income, so no, it is not always the final underwriting figure.
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