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Mortgage Calculators

debt-to-income ratio

How Much Debt

The debt-to-income ratio is calculated by:

dividing your fixed monthly debt expenses by your gross monthly income.

As a basic rule, you should live within the following percentages:

monthly housing debt expenses including taxes, insurance: 25-28%
other credit obligations (credit cards, auto loans, student loans, etc.): 10-15%
your total debt obligations should be around:

Calculating Your Debt-to-Income Ratio:
Input the following data to calculate your debt ratio:

Fixed monthly expenses include:

  • monthly housing debt/rent expenses including taxes, insurance.
  • monthly installment loan payments
  • monthly revolving credit line payments
  • real estate loan payment on non-income producing property
  • alimony and child support
  • any tax or legal assessments

  use this calculator to calculate the monthly expense from an annual expense

Monthly Mortgage or Rent (include escrow payment):
Monthly Auto or Other Installment Loan Payments:
Minimum Monthly Credit Card Payments:
Minimum Credit Line Payments (home equity):
Monthly Real Estate Non-Income Loan Payments:
Monthly Alimony and Child Support Payments:
Monthly Tax and Legal Assessments:
Monthly Other Payments:

Monthly Gross Salary or Pay:

Annual Bonus:
Monthly Alimony / Child Support:
Other Monthly Income:
Monthly Debt Payments:
Monthly Gross Income:
Debt-to-Income Ratio (should be around 36%): %

Debt Ratio Barometer:

  • 36% or less:
    debt level within acceptable range for most people.

  • 37%-42%:
    debt level a little high, need to take corrective action to bring debt level down. You may consider paying off or consolidating some of your debt.

  • 43%-50%:
    danger level, need to take immediate action before you lose control of your financial situation.

  • 50% or more:
    excessive debt loan, may need to seek credit counseling services

* Calculations are based upon the assumptions you entered. Please note that rounding errors can make a small difference in calculations. Your actual mortgage lending rate may vary depending on your credit quality and lender. The circumstances surrounding your credit and loan qualifications may result in different calculations.

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