Debt-to-income ratio
20.00%
Monthly debt payments divided by gross monthly income
Gross monthly income
$10,000.00
Monthly debt
$2,000.00
Gross monthly income is the annual income divided by 12 and rounded to the cent. A ratio near 36% is a planning guideline used on the mortgage affordability page. Lenders set their own limits. This is not a loan decision. These figures are illustrative estimates only. They are not financial, investment, tax, lending, or legal advice.
Learn more
How this calculator works and what to know before using it
What this calculator does
Divides the debt payments you make each month by your gross monthly income.
How to use it
- Enter gross annual income, before tax.
- Enter the monthly payments on the debts, not the balances.
- Read the ratio and the monthly income used in it.
Formula used
Monthly debt payments divided by gross monthly income
Gross monthly income is annual income divided by 12, rounded to the cent. Debt-to-income = monthly debt payments รท gross monthly income.
Source. The Consumer Financial Protection Bureau defines a debt-to-income ratio as the total of monthly debt payments divided by gross monthly income. Gross monthly income here is the annual income divided by 12 and rounded to the cent. The 36% planning figure used elsewhere on this site is not a limit set by that definition. CFPB, debt-to-income ratio.
Updated November 1, 2026
Example
An annual income of $120,000.00 is $10,000.00 a month. Debt payments of $2,000.00 are a debt-to-income ratio of 20.00%.
Good to know
- The 36% figure on the mortgage affordability page is this site's planning guideline. Lenders set their own limits.
- Housing, cards, and other loans are included only if you type their payments.
Common questions
- Does this use the balance or the payment?
- It uses the payment. A large balance with a small payment counts as the payment.
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