Dollar Feeder field guide
Debt-to-income ratio calculator
Calculate monthly debt payments as a share of gross income, with an example and a clear explanation of the result.
Debt-to-income ratio
Estimate a debt-to-income ratio from monthly debts and income.
Start with the right numbers
Use your monthly debt obligations and income before payroll deductions. For a borrowing decision, ask the lender which obligations and income sources it includes. This estimate is not a loan approval.
A worked example
Monthly debt payments of $1,200 divided by gross income of $4,800 equal 0.25. Multiply by 100 to get a DTI of 25%. A lower ratio means a smaller share of that income is committed to the included debts.
What the result leaves out
DTI does not describe all living costs. Groceries, utilities, savings needs, and irregular bills still affect whether a new payment is affordable. Different loan products use different limits; there is no universal pass mark here.
Continue with the debt-to-income guide and a take-home-pay budget.
Source: CFPB explanation of DTI.
Educational estimate. Calculations run in your browser; the values are not submitted to Dollar Feeder.