Debt-to-Income Ratio Calculator
Your DTI is monthly debt payments divided by gross monthly income. Lenders use it to decide how much more you can borrow.
Your numbers
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Debt-to-income ratio
42.5%
$3,060 of debt against $7,200 of gross income
- Total monthly debt payments
- $3,060
- Housing-only ratiolenders often want this under 28%
- 29.2%
- Room before 36%
- $0
Stretched — still approvable for many loans, with less room to spare.
How to use this calculator
Front-end versus back-end
The front-end ratio counts only housing costs; the back-end ratio counts every required debt payment. Mortgage lenders usually look at both, with common guidance around 28% and 36%.
Lowering it
There are only two levers: raise gross income or cut required monthly debt payments. Clearing a small loan entirely often moves the ratio more than shaving a little off several balances.
Common questions
Is gross or net income used?
Gross — income before taxes and deductions. That's why a ratio that looks fine to a lender can still feel tight in your actual take-home budget.
Do utilities and groceries count?
No. Lenders count required debt payments only. Living expenses matter enormously to you, but they don't appear in the ratio.
This calculator is an educational estimate based only on the figures you enter. Verdi does not provide financial, investment, tax, legal, credit or lending advice. Actual rates, fees, taxes and terms offered to you may differ.