Compare your required monthly payments with income before taxes. See your current ratio, test a planned housing payment, and explore your own debt-ratio targets.
Your estimate
Calculate to see your results.
The bar stops at 100%; the numeric ratio can exceed 100%.| Average gross monthly income | — |
|---|---|
| Monthly non-housing debts | — |
| Housing allowance at housing target | — |
| Housing room at total-debt target | — |
| Total housing allowance using both targets | — |
Understanding your debt-to-income ratio
DTI compares monthly debt obligations with gross monthly income: monthly payments ÷ monthly income × 100. This calculator includes the housing amount you enter in the total. The housing ratio considers housing alone.
How is income converted to a monthly amount?
Annual income is divided by 12. Weekly income is multiplied by 52 and divided by 12. Income paid every two weeks uses 26 payments a year; twice-monthly income uses 24. These are annualized averages, so individual calendar months can differ.
Should planned housing replace my current payment?
Choose replacement if the current housing payment will end. Choose addition if it will continue, such as when keeping an existing property payment. Other debts remain unchanged in both scenarios. A lender may treat your situation differently.
How is the housing allowance calculated?
The housing-only allowance is monthly income times your housing target. The total-debt allowance is monthly income times your total target, minus non-housing debts. The calculator uses the smaller nonnegative allowance. If other debts already exceed the total target, a zero housing payment still will not meet that target.
What belongs in the monthly payment fields?
Enter required payments, not outstanding balances. Include mortgage-related housing costs only once. Groceries, utilities and other living expenses still matter for your budget but are not included in this calculation. Follow your lender’s instructions for qualifying income and obligations.
Do the targets predict approval?
No. They are editable planning assumptions. Lender and loan-product limits vary, and DTI is only one part of an application assessment. A lower ratio also does not account for every household expense.