How to use this calculator
- Enter total monthly debt payments, gross monthly income.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Include consistent recurring debt obligations. Gross income is before tax and deductions. The result is not a lender approval or a universal borrowing threshold.
Worked example
Monthly debt of 2,000 divided by gross income of 6,000 gives a DTI of about 33.33%.
What the result means
The ratio measures the share of gross income committed to debt. Living expenses still matter even when they are outside the debt total.
Common questions
Should I use take-home pay?
This DTI definition uses gross income before deductions.
Does a low ratio guarantee approval?
No. Underwriting rules and other eligibility factors vary.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.
Background reference: www.consumerfinance.gov — financial method. FinanceMath implements its own calculator.