Debt-to-Income (DTI) Ratio Calculator
Your debt-to-income (DTI) ratio is the share of your gross monthly income that goes to debt payments — and it is one of the first numbers a lender checks when you apply for a mortgage or loan. Enter your monthly debts and income to see where you stand.
This calculator shows both the back-end ratio (all debt payments) and the front-end ratio (housing only), then compares them against the thresholds lenders typically use so you know whether you are in qualifying range.
Back-end DTI ratio
38.3%
Manageable — Between 36% and 43% — acceptable for many mortgage programs.
- Front-end DTI (housing only)
- 25%
- Total monthly debt
- $2,300
- Gross monthly income
- $6,000
Calculation Formulas
Add every recurring monthly debt payment — housing, auto, student, credit card minimums, and other loans — and divide by gross (pre-tax) monthly income. This is the ratio lenders weigh most heavily.
Example:
$1,800 in total debt payments ÷ $6,000 gross monthly income = 0.30, or a 30% back-end DTI.
Only the housing payment (rent or full mortgage PITI) divided by gross income. Lenders often want this at or below 28%.
Key Figures
| Figure | Value | Description |
|---|---|---|
| Gross, not net | Pre-tax income | DTI uses income before taxes and deductions — the same basis lenders use when underwriting. |
| 28/36 rule | 28% front / 36% back | A common guideline: keep housing at or below 28% of gross income and total debt at or below 36%. |
| Qualified-mortgage limit | Often up to 43% | Many mortgage programs allow a back-end DTI up to 43%, and some borrowers qualify higher with compensating factors. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: July 2026
- CFPB qualified mortgage guidance
The Consumer Financial Protection Bureau has historically pointed to a 43% back-end DTI as a common upper limit for qualified mortgages, with lenders applying their own overlays.
- The 28/36 rule
A long-standing lending benchmark recommends spending no more than 28% of gross monthly income on housing and no more than 36% on total debt — the thresholds this calculator compares your ratios against.
How to Use This Calculator
- Enter your gross monthly income — your pay before taxes and deductions.
- Enter your monthly housing payment (rent or full mortgage PITI).
- Add your other monthly debt payments — car loans, student loans, credit card minimums, and personal loans.
- Read your front-end and back-end DTI ratios and how they compare to common lender limits.
Frequently Asked Questions
What is a good debt-to-income ratio?
Lenders generally prefer a back-end DTI (all debt payments) of 36% or less, though many mortgage programs allow up to 43%, and some qualified borrowers go higher. Below 36% is considered healthy; above 43% makes approval harder and signals your budget is stretched.
What is the difference between front-end and back-end DTI?
Front-end DTI counts only your housing payment against gross income; back-end DTI counts all monthly debt payments — housing plus car loans, student loans, credit card minimums, and other debts. Lenders weigh the back-end ratio most heavily, and a common target is 28% front-end and 36% back-end.
What is included in the debt-to-income ratio?
DTI uses recurring monthly debt: your rent or mortgage (including taxes and insurance), auto loans, student loans, minimum credit card payments, personal loans, and court-ordered payments like child support. It excludes expenses such as utilities, groceries, and insurance that is not part of your housing payment.
How can I lower my debt-to-income ratio?
You can lower DTI two ways: reduce monthly debt (pay off a loan or credit card balance, or avoid taking on new payments) or increase gross income. Paying off a small loan that carries a large monthly payment often improves your ratio faster than chipping at a large, low-payment debt.
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