What counts as gross monthly income?

Gross monthly income means income before taxes, insurance, retirement contributions, or other deductions come out. If your pay varies, use a realistic average month.

What counts as debt payments here?

Use required monthly obligations only: mortgages, rent-to-own contracts, auto loans, student loans, minimum credit-card payments, personal loans, or court-ordered support. Day-to-day living costs like groceries or utilities are not debt payments for this calculator.

Does this tell me whether I will be approved?

No. This is a budgeting and planning screen only. It does not estimate approval odds, lender rules, taxes, or country-specific underwriting thresholds.

Why is the target ratio optional?

Because the calculator should not invent a benchmark for you. If you already have a planning target, enter it and the calculator will show payment room and income needed. If you leave it blank, you still get the current and with-payment ratio math.

What does a negative payment room mean?

A negative payment room means your current required debt payments already exceed the share of gross income allowed by the target you chose. It is an over-target planning signal, not a promise that a lender would say yes or no.

Debt-to-Income Ratio Calculator

See how much of your gross monthly income is already committed to required debt payments, what a proposed new payment would change, and how much room remains if you pick your own target ratio.

How It Works

Formula

\mathrm{DTI}_{\mathrm{current}} = \dfrac{D_{\mathrm{current}}}{I_{\mathrm{gross}}}

\mathrm{DTI}_{\mathrm{projected}} = \dfrac{D_{\mathrm{current}} + P_{\mathrm{new}}}{I_{\mathrm{gross}}}

R_{\mathrm{payment}} = I_{\mathrm{gross}} \times t - D_{\mathrm{current}}

I_{\mathrm{needed}} = \dfrac{D_{\mathrm{current}} + P_{\mathrm{new}}}{t}

$I_{\mathrm{gross}}$: Gross monthly income before taxes and deductions
$D_{\mathrm{current}}$: Current required monthly debt payments
$P_{\mathrm{new}}$: Proposed new required monthly payment
$t$: Target ratio expressed as a decimal share of gross income
$R_{\mathrm{payment}}$: Maximum additional payment room at the chosen target
$I_{\mathrm{needed}}$: Gross monthly income needed to fit the proposed payment within the chosen target

Enter gross monthly income before taxes and deductions, then enter the monthly debt payments you are already required to make. If you are considering a new payment, add it to see the before/after DTI comparison. If you also choose a target ratio, the calculator shows how much additional monthly payment room remains at that target and how much gross income would be needed to carry the proposed payment within it.

Frequently Asked Questions

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