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Debt-to-Income (DTI) Ratio Calculator
Lenders use your debt-to-income ratio to decide how much you can borrow. Work out yours and see where it stands.
How DTI is calculated
DTI = Total monthly debt payments ÷ Gross monthly income × 100
Lenders look at two versions. The front-end ratio counts only housing costs (mortgage principal, interest, property tax, insurance, HOA). The back-end ratio counts housing plus every other debt payment. When people say "DTI" they usually mean the back-end ratio.
Example
With $6,000 a month gross income, a $1,600 housing payment, a $400 car loan, $250 of student loans and $100 of card minimums, debts total $2,350. The back-end DTI is 2,350 ÷ 6,000 = 39.2% and the front-end ratio is 1,600 ÷ 6,000 = 26.7%.
What lenders look for
| Back-end DTI | What it usually means |
|---|---|
| Under 36% | Comfortable. Best rates and easiest approval. |
| 36%–43% | Acceptable for most mortgages, but less room for new debt. |
| 43%–50% | Possible with FHA or with strong credit and savings; expect more scrutiny. |
| Over 50% | Hard to get approved; focus on paying down debt. |
To lower your DTI, pay off small balances completely (removing their minimums), avoid new loans before applying for a mortgage, or add a co-borrower's income. See how much house fits your DTI with the home affordability calculator.
Frequently asked questions
What is a good debt-to-income ratio?
Under 36% is generally seen as healthy, with no more than 28% going to housing. Many mortgage programs accept up to 43%, and some up to 50% with strong credit or savings.
What counts as debt in DTI?
Monthly payments that show on your credit report or loan applications: rent or mortgage (with tax and insurance), car loans, student loans, minimum card payments, personal loans, child support and alimony. Utilities, groceries and insurance premiums are not included.
Is DTI based on gross or net income?
Gross income, before taxes and deductions. That is why lenders' limits can feel generous compared with your actual budget.