Debt-to-income ratio calculator

General guidance only. DTI thresholds vary by lender, loan type, and debt relief program. This calculator provides a standard DTI figure for planning purposes. See our full disclaimer.

Monthly gross income

Enter your income before taxes. Include all sources.

Wages and salary

Other income (self-employment, rental, etc.)

Monthly debt payments

Enter minimum monthly payments - not balances. Include all recurring debt obligations.

Mortgage or rent payment

Car loan payments

Credit card minimum payments

Student loan payments

Child support or alimony paid

Other loan payments (personal, medical, etc.)

Your debt-to-income ratio

Is your DTI too high? Talk to a bankruptcy attorney.

A high DTI often signals that debt relief - whether bankruptcy, negotiation, or consolidation - could free up significant monthly cash flow. A bankruptcy attorney reviews your full picture for free.

What does your DTI actually mean?

DTI is calculated by dividing your total monthly debt payments by your gross monthly income, then multiplying by 100 to get a percentage.

A DTI below 36% is generally considered healthy - lenders approve most loan products at this level and you have room to absorb a financial shock. Between 37% and 43% is the warning zone - you qualify for mortgages but with less favorable terms.

Above 43%, most conventional mortgage lenders won't approve a new loan. Above 50%, debt relief options deserve serious consideration. A DTI above 50% means more than half your gross income is already committed to debt service before you pay for food, utilities, or anything else.

If your ratio is high, use the bankruptcy chapter selector to see whether Chapter 7 or Chapter 13 could eliminate enough debt to bring your DTI back to a manageable level.

What's the difference between front-end and back-end DTI?

Mortgage lenders use 2 DTI numbers. The front-end ratio covers housing costs only (mortgage principal, interest, taxes, and insurance). Most lenders want this below 28%.

The back-end ratio - the one this calculator produces - covers all monthly debt obligations. Most conventional lenders cap this at 43%, though FHA loans allow up to 57% with compensating factors.

For bankruptcy and debt relief purposes, the back-end DTI is the relevant number. It shows your total debt burden relative to income and is the starting point for any debt management analysis.

When does a high DTI signal a need for debt relief?

A DTI above 50% is a clear warning sign. At that level, you're spending more than half your gross income on debt before taxes - leaving very little for living expenses.

A DTI above 43% combined with growing balances (because minimum payments don't cover interest) is a debt spiral. The balances grow each month even when you're making payments on time.

Bankruptcy - particularly Chapter 7 - can eliminate unsecured debt entirely, dropping a 55% DTI to 20% or less overnight. That's not a last resort; it's a legal tool designed exactly for this situation. Run the Chapter 7 means test to see if your income qualifies.

Other options include debt consolidation (combining multiple payments into one lower-rate loan), debt settlement (negotiating lump-sum payoffs below the balance), and Chapter 13 repayment plans. Use the Chapter 13 repayment calculator to estimate what a structured repayment plan would cost per month.

How does bankruptcy affect your DTI?

A Chapter 7 discharge eliminates qualifying unsecured debt completely. Credit card payments, medical bills, and personal loans drop to zero on your DTI the moment the discharge is entered.

Secured debts like mortgages and car loans remain if you reaffirm them - but those are often the payments you want to keep anyway. The result for most filers is a DTI that falls by 20 to 30 percentage points immediately after discharge.

Chapter 13 consolidates all debt payments into 1 monthly plan payment to the trustee. That single payment replaces multiple separate payments, often resulting in a lower total monthly obligation and a more manageable DTI throughout the plan period.

Frequently asked questions

Below 36% is considered healthy by most financial standards. You have manageable debt relative to income and can likely qualify for most loan products. Between 36% and 43% is elevated but still within most mortgage lender limits. Above 43% makes conventional mortgage approval difficult. Above 50% indicates a debt load that may be unsustainable and warrants reviewing debt relief options including bankruptcy, consolidation, or negotiated settlements.

Yes, in the back-end DTI used by most lenders and debt analysts, rent counts as a housing payment and is included. It's the largest single component for most renters. Front-end DTI (used by mortgage lenders evaluating a home purchase) replaces rent with the proposed new mortgage payment. For personal debt management purposes, always include rent - it's a mandatory fixed expense just like a mortgage payment.

Not directly. Bankruptcy eligibility is determined by the means test (Chapter 7) or debt limits (Chapter 13), not your DTI. However, a very high DTI - above 50% - is often a strong indicator that bankruptcy makes financial sense, since it signals that debt payments are consuming too large a share of income to be sustainable. Bankruptcy trustees and attorneys often look at DTI alongside total debt load to assess whether a filing is appropriate and likely to be approved.

Yes. You can lower DTI by increasing income, paying down debt balances (which reduces minimum payments), refinancing at lower rates, or negotiating settlements that eliminate accounts. Debt consolidation replaces multiple minimum payments with one lower payment. The challenge is that many of these approaches take years, while a Chapter 7 discharge can eliminate qualifying unsecured debt in 4 to 6 months. The right path depends on the type of debt, your income trajectory, and how much of the debt load is unsecured vs. secured.

Most conventional mortgage lenders cap back-end DTI at 43% to 45%. FHA loans allow up to 57% with compensating factors (strong credit score, large down payment, significant reserves). VA loans are more flexible, with lenders assessing residual income rather than a hard DTI ceiling. Fannie Mae and Freddie Mac automated underwriting systems can approve loans above 45% DTI in some circumstances. The front-end (housing-only) ratio should generally stay below 28% for conventional loans.