What this calculator helps you do
Measure entered recurring monthly debt against monthly income. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—gross monthly income of $6,000, monthly housing payment of $1,500, auto loan payments of $350, credit card minimums of $180, other monthly debt of $220—the calculator returns back-end dti of 37.50%; housing ratio: 25.00%; total monthly debt: $2,250.00. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
DTI is a screening ratio, not a complete budget. A lower ratio generally leaves more room for savings and unexpected expenses, but lender definitions differ.
Common mistakes to avoid
- Using annual income without converting it to monthly income.
- Leaving contractual debt payments out.
- Including normal living expenses in a ratio intended only for debt obligations.
Limits and assumptions
Lenders may use gross income, verified debts, housing treatment, and ratio thresholds that differ from this tool.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
What is back-end DTI?
It is total entered monthly debt divided by monthly income.
Should utilities be included?
Usually not in a conventional debt ratio, though they still matter for affordability.
Is there one universal good DTI?
No. Product, lender, country, credit profile, and household circumstances differ.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.