Quick answer: Debt-to-income ratio is monthly debt payments divided by gross monthly income, multiplied by 100. For example, $1,000 of monthly debt and $4,000 of gross monthly income gives 25% DTI. Use the optional new-payment field to see its effect; no example predicts approval.
Published: September 29, 2026 | Last updated: October 22, 2026 | Written by: Borrow Your Loan Editorial Team
Estimated DTI including new payment
Enter values to estimate DTI.
What is DTI and how is it calculated?
Debt-to-income ratio is monthly debt payments divided by gross monthly income, multiplied by 100. For example, $1,000 of monthly debt divided by $4,000 of gross income is 25%. Adding a hypothetical $250 monthly payment changes that example to 31.25%.
What is gross monthly income?
Gross income is income before taxes and other deductions. A regular annual salary can be divided by 12 for a monthly planning estimate. Variable, self-employment, seasonal, or additional income may require a different average and supporting records; each lender decides which verified income it accepts.
Which monthly debts should you include?
For this calculator, enter your housing payment, recurring monthly debt payments, and the optional new payment in their labelled fields. Examples may include auto payments, student-loan payments, and required credit-card payments. Count each obligation once. A lender’s calculation can use different treatment for housing, deferred debts, and other obligations.
| Gross monthly income | Existing monthly debts | Optional new payment | Current DTI | DTI including new payment |
|---|---|---|---|---|
| $4,000.00 | $1,000.00 | $250.00 | 25.00% | 31.25% |
| $5,000.00 | $1,700.00 | $300.00 | 34.00% | 40.00% |
| $6,500.00 | $1,500.00 | $400.00 | 23.08% | 29.23% |
| $8,000.00 | $2,400.00 | $500.00 | 30.00% | 36.25% |
Why may lenders consider DTI?
DTI provides one view of existing payment commitments relative to income. A lender may also consider credit history, verified income, identity, requested amount, purpose, state availability, and its own underwriting policy. No ratio in these examples guarantees acceptance or rejection.
What can DTI miss?
Gross-income DTI does not show take-home pay, food, utilities, childcare, insurance, emergency savings, or every irregular expense. A lower ratio does not by itself establish affordability. Review your remaining monthly cash after essentials as well as the ratio.
Methodology
DTI estimate = (housing payment + other monthly debt + estimated new loan payment) / gross monthly income x 100. Lenders may calculate or interpret DTI differently.
Illustrative DTI example
Illustrative example - not an approval prediction. With $5,000 gross monthly income, $1,200 housing payment, $500 other debt, and a $250 possible new payment, the estimated DTI changes as shown below.
| Gross monthly income | Existing monthly debt | Optional new payment | DTI before new payment | DTI with new payment |
|---|---|---|---|---|
| $5,000.00 | $1,700.00 | $250.00 | 34.0% | 39.0% |
What to remember
| Input | Why it matters |
|---|---|
| Gross income | Common DTI formulas use income before taxes. |
| Existing debt | Existing obligations reduce room for another payment. |
| New payment | The estimated payment helps show the effect of added debt. |
Related eligibility resources
Use these crawlable guides with the calculator when reviewing affordability, income, and credit readiness.
- Debt-to-income ratio for a personal loan
- Personal loan income requirements
- What credit score is needed for a personal loan?
- Personal loan prequalification
- Personal loan with a 600 credit score
- Personal loan with a 650 credit score
- Personal loan with a 700 credit score
- Documents needed for a personal loan
- Personal loan resources
- Loan affordability calculator