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Debt-to-Income Ratio

Work out the share of your gross monthly income that goes to debt payments, including your mortgage or rent.

What this tool does

Work out the share of your gross monthly income that goes to debt payments, including your mortgage or rent. You fill in these fields: Gross monthly income, Mortgage or rent, Auto loans, Credit card minimum payments, and Other debt payments. It shows debt-to-income ratio, total monthly debt, and income left after debt.

Inputs

  • Gross monthly income (USD): A number. Must be at least 0.
  • Mortgage or rent (USD): A number. Must be at least 0.
  • Auto loans (USD): A number. Must be at least 0.
  • Credit card minimum payments (USD): A number. Must be at least 0.
  • Other debt payments (USD): A number. Must be at least 0.

How to use

  1. Enter the gross monthly income in USD.
  2. Enter the mortgage or rent in USD.
  3. Enter the auto loans in USD.
  4. Enter the credit card minimum payments in USD.
  5. Enter the other debt payments in USD.
  6. Read the result: debt-to-income ratio, total monthly debt, and income left after debt. It appears once every required field has a valid value.

Worked examples

Example 1. Inputs:

  • Gross monthly income: 5,000 USD
  • Mortgage or rent: 1,500 USD
  • Auto loans: 400 USD
  • Credit card minimum payments: 200 USD
  • Other debt payments: 100 USD

Results:

  • Debt-to-income ratio: 44.0%
  • Total monthly debt: $2,200.00
  • Income left after debt: $2,800.00

How this is worked out: Total monthly debt = 1500 + 400 + 200 + 100 = 2200. Ratio = 2200 / 5000 x 100 = 44 percent. Income left = 5000 - 2200 = 2800.

Example 2. Inputs:

  • Gross monthly income: 4,000 USD
  • Mortgage or rent: 0 USD
  • Auto loans: 0 USD
  • Credit card minimum payments: 0 USD
  • Other debt payments: 0 USD

Results:

  • Debt-to-income ratio: 0.0%
  • Total monthly debt: $0.00
  • Income left after debt: $4,000.00

How this is worked out: No debt payments: 0 / 4000 x 100 = 0 percent. Income left is the whole 4000.

Example 3. Inputs:

  • Gross monthly income: 3,000 USD
  • Mortgage or rent: 1,200 USD
  • Auto loans: 300 USD
  • Credit card minimum payments: 150 USD
  • Other debt payments: 0 USD

Results:

  • Debt-to-income ratio: 55.0%
  • Total monthly debt: $1,650.00
  • Income left after debt: $1,350.00

How this is worked out: Total monthly debt = 1200 + 300 + 150 + 0 = 1650. Ratio = 1650 / 3000 x 100 = 55 percent. Income left = 3000 - 1650 = 1350.

Limitations

  • Uses the monthly amounts you type. It does not look at your credit report or check which debts you have.
  • Does not include living costs such as food, utilities or insurance.
  • Gross income must be greater than 0.

FAQs

Q: What counts as monthly debt?
A: The four amounts you enter: mortgage or rent, auto loans, credit card minimum payments and other debt payments. Enter 0 for any that do not apply.
Q: Should I use gross or take-home income?
A: The calculator uses the gross monthly income you enter, which is income before tax and deductions.
Q: Does the result say whether my ratio is good or bad?
A: No. The calculator shows the ratio and the income left after debt. Lenders set their own limits.
Q: Does it give a separate housing ratio?
A: No. The result is one ratio that counts all the debt payments you enter together.

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