Interpretation
A ratio is not the same as affordability.
DTI ignores taxes, ordinary living costs, savings goals, assets, income stability and possible payment changes.
Borrowing calculator
Debt-to-Income Ratio Calculator
Divide recurring monthly debt payments by gross monthly income. Compare your current ratio with a scenario that includes one proposed new payment.
Current DTI—
DTI with proposed payment—
Current monthly debt—
Current scenario
—Debt share of gross income
Proposed scenario
—Debt share after new payment
Debt payments with proposal—
Gross income after current debt—
Gross income after proposed debt—
—
—
Method
Monthly debt payments divided by gross monthly income.
The calculator uses DTI = recurring monthly debt payments ÷ gross monthly income. It shows the entered scenario without assigning a universal approval threshold.
Source
The standard ratio definition.
The US Consumer Financial Protection Bureau defines DTI as monthly debt payments divided by gross monthly income and notes that limits differ across lenders and loan products.
Consumer Financial Protection Bureau — What is a debt-to-income ratio?