Debt-to-Income Ratio Calculator
Lenders measure two ratios and the tighter one decides. On $10,000 of gross income with $2,600 of housing cost and $650 of other obligations, housing is 26% and total debt is 33%. A 28% housing ceiling allows $2,800 and a 36% total ceiling allows $2,950, so housing is what binds, with $200 of room left.
On this page
How the maths works
Two ratios, both against gross income, both tested:
housing ratio = housing cost ÷ gross income
total debt ratio = (housing cost + other obligations) ÷ gross income
Gross, not take-home. Lenders work from income before tax, which is why the ratios look kinder than your bank account does. The tighter of the two is the one that decides, and which one that is depends entirely on how much other debt you carry.
28 and 36 are a convention, not a rule
They are worth knowing because lenders built programmes around them, and worth holding loosely because nothing makes them binding. The Consumer Financial Protection Bureau publishes no threshold of its own, and says so explicitly: different loan products and different lenders set different limits.
In practice the market is all over the place. One national bank ships three tiers at 36, 43 and 50 and labels them affordable, stretch and aggressive. A major comparison site hard-codes 36 and offers no way to change it. FHA underwriting commonly runs at 31 and 43, and VA works from residual income rather than a ratio at all. Both ceilings here are sliders for that reason.
Which ratio is holding you back
This is the practical question and the answer changes what you should do about it.
- If the housing ratio binds, which is usual for someone with no car or student loan, then the house is the constraint. A larger down payment or a cheaper property moves the answer; clearing debts you do not have cannot.
- If the total debt ratio binds, the house is not the problem. Paying off a car loan with eleven months left frequently unlocks more borrowing capacity than saving the same money toward the deposit would.
That second case is the one people get wrong most often, and it is the reason both ceilings are shown side by side rather than only the tighter one.
What counts as debt
What appears on a credit report and recurs. Car loans, student loans, minimum card payments, personal loans, and court-ordered obligations such as child support or alimony. Student loans in deferment are usually still counted, at a percentage of the balance, which surprises people every time.
What does not count: utilities, insurance premiums, groceries, childcare, subscriptions and everything else that makes a budget real. The ratio is a lender's measure of obligations on record, not a measure of what you can afford, and the gap between those two is where the discipline has to come from you rather than from underwriting.
What this page deliberately does not do
It does not ask for a credit score, because credit does not enter either ratio. It does not turn a ratio into a verdict, because a ratio is one input into an underwriting decision that also weighs reserves, employment history, the property and the programme. Nothing here is a lending decision, and no calculator anywhere can make one.
Where the total debt ratio lands at other incomes
| Housing cost | On $8,000 | On $10,000 | On $12,000 |
|---|---|---|---|
| $2,000 | 33% | 27% | 22% |
| $2,400 | 38% | 31% | 25% |
| $2,800 | 43% | 35% | 29% |
| $3,200 | 48% | 39% | 32% |
| $3,600 | 53% | 43% | 35% |
Frequently asked questions
What is a good debt-to-income ratio?
The convention is under 28% for housing and under 36% for everything, and it is worth knowing that the CFPB publishes no threshold of its own, on the stated grounds that different products and different lenders set different limits. Approvals well above 36% are routine on some programmes and impossible on others.
Which of the two ratios actually decides?
Whichever is tighter for you. With no car loan and no student loan the housing ceiling binds, so a larger down payment moves the answer. With significant other obligations the total ceiling binds instead, and clearing a balance moves it further than saving does.
Does this page need my credit score?
No, because credit does not enter either ratio. It changes the rate a lender offers you and which programmes are open to you, both of which sit outside this arithmetic. Nothing on this page is a lending decision.
What counts as debt here?
What appears on a credit report and recurs: car and student loans, minimum card payments, personal loans, and court-ordered obligations such as child support. Utilities, insurance premiums, groceries and subscriptions do not, even though they are just as real to your budget.
Sources
Last updated: August 25, 2026