Guide · Feb 24, 2024
How Do I Calculate My Debt-to-Income Ratio?
The formula, a worked example, and how student loans are counted.
By Michael Gonzales · Last updated
Short answer: Your debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income, shown as a percentage. If you pay $1,800 a month in debts and earn $6,000 before taxes, your DTI is 30%. Lenders use it to judge whether you can take on more debt.
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The formula
DTI = total monthly debt payments ÷ gross monthly income × 100
Include: mortgage or rent (for mortgage applications, the proposed housing payment), car loans, student loans, minimum card payments, personal loans, child support or alimony you pay.
Don't include: utilities, groceries, insurance (unless part of the mortgage payment), or phone bills.
Worked example
| Payment | Monthly |
|---|---|
| Proposed mortgage | $1,400 |
| Car loan | $350 |
| Student loan | $250 |
| Card minimums | $150 |
| Total | $2,150 |
Gross income $6,500 → DTI = 33%.
How student loans count
Lenders use your actual monthly payment. If your payment is $0 under an income-driven plan or in deferment, many lenders instead use a percentage of the balance (often 0.5%–1%) or the payment shown on your servicer documents, depending on the loan program. Check with the lender.
What's a good DTI?
The CFPB notes many lenders look for 43% or less for mortgages, and lower is better. Under 36% is generally considered comfortable.
Sources
- CFPB, What is a debt-to-income ratio?
- HUD, FHA single-family housing policy handbook
- Federal Student Aid, Repayment plans
Last reviewed October 12, 2026. This article is general information, not legal, tax or financial advice.
Frequently asked questions
How do I calculate my debt-to-income ratio?
Add your monthly debt payments, divide by your gross monthly income, and multiply by 100.
What is a good debt-to-income ratio?
Under 36% is generally comfortable; many mortgage lenders cap it around 43%, with exceptions.
Are student loans included in DTI?
Yes. If your payment is $0, lenders may use a percentage of the balance instead, depending on the loan program.
Written by
Michael Gonzales
Founder & Editor
Michael Gonzales is the founder of Cloudalien Technologies LLC, the company that owns DebtHaus. DebtHaus is not a lender, broker, settlement company or law firm.