Using the Debt-to-Income Ratio Calculator
Add the monthly obligations relevant to your comparison and use income before tax. Consistency matters: a household calculation should use household obligations and household income together.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Monthly debt payments
- 1500
- Gross monthly income
- 6000
Example result
- Debt-to-income ratio (%)
- 25
Method and assumptions
Monthly debt / gross monthly income × 100. Lender rules vary.
Use a consistent budget period
Convert income and expenses to the same period before comparing them. A weekly expense is not simply a monthly expense divided by four across a full year. Keep gross and take-home income clearly labeled, and reserve space for irregular costs. The result reflects the entered budget rather than every commitment a household may have.
Common question
Should rent and groceries be included?
This calculator accepts whatever debt-payment total you supply. Ordinary living expenses are normally tracked separately in a budget; lender-specific housing and debt definitions should be checked when using the ratio for an application.
Guide updated .