RightFiguresA debt-to-income ratio is the monthly debt payments you enter divided by the gross monthly income you enter. This page shows that ratio and the housing payment’s share of the same income. It does not decide whether a lender will approve a loan.
Gross monthly income is income before taxes and payroll deductions. Enter the monthly amount you want to use. The calculator does not convert an annual salary.
What to put in each field
The housing payment is rent, or the mortgage principal and interest, plus the property taxes, homeowners insurance, and association dues you pay each month. Count each of those amounts in the housing field only.
Installment payments are fixed monthly loans such as a car or student loan. Revolving minimums are the minimum payments on credit cards and other revolving accounts. Other monthly debts can include support, a personal loan, or another payment you want in the total. Count each payment in only one field.
A blank payment is $0.00. Utilities, groceries, childcare, and savings are not added unless you type them into a field. A loan with only a few payments left is not removed automatically. You decide what belongs in the total.
How the percents are calculated
The four payments are added. That sum divided by gross monthly income is the total debt share. The housing payment divided by the same income is the housing share. Both percents use half-up rounding and keep up to six decimal places, with at least two decimal places on screen. A housing payment of $0.00 still appears as 0.00%.
A ratio can be larger than 100% when the payments you enter are larger than the income. The result is still only a ratio. It is not a cutoff at 28%, 36%, 43%, 45%, or 50%, and it is not a lender’s underwriting worksheet.
Worked example
Payments of $1,500, $100, and $400 are $2,000. Divided by $6,000 of gross monthly income, the total is 33.333333%. The $1,500 housing payment is 25.00% of that income. The Consumer Financial Protection Bureau describes this kind of example as about 33 percent. This calculator keeps the extra decimal places instead of rounding the display to a whole percent.
Sources & review
- What is a debt-to-income ratio? — Consumer Financial Protection Bureau
- B3-6-02, Debt-to-Income Ratios — Fannie Mae
Last reviewed: . The formula is reproduced above so you can check the math independently.
Educational ratio only. A lender can count different debts, omit a short remaining term, or apply its own limit. This page does none of that.