Debt-to-Income Ratio Calculator

See if you qualify for a mortgage or loan using the same ratios lenders use

How to Use the Debt-to-Income Calculator

Enter your annual income, your monthly housing costs (mortgage or rent, taxes, insurance, HOA), and your other monthly debt payments (car loans, student loans, credit cards). The calculator returns your front-end and back-end DTI — the two ratios lenders use to decide how much you can borrow.

Gross income before taxes — lenders use this for qualification.

Monthly Housing Costs (Front-End)

PITI: principal, interest, taxes, and insurance.

HOA fees, condo fees, second mortgage payments.

Other Monthly Debt (Back-End)

Personal loans, alimony, child support, etc.

Front-End DTI (Housing) 0%
Back-End DTI (Total Debt) 0%

Lender Verdict

Lender Guidelines (Conventional Loan)

Excellent (≤ 36%) —
Good (36-43%) —
Borderline (43-50%) —
High Risk (50%+) —

Monthly Breakdown

Total Monthly Debt $0
Monthly Gross Income $0

What Is a Debt-to-Income Ratio?

Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward debt payments. Lenders use it to judge your ability to manage monthly payments and repay borrowed money. There are two types: front-end DTI (housing costs only) and back-end DTI (all debts including housing).

What Are Good DTI Limits?

Loan Type Back-End DTI Limit
Conventional mortgage 43-45% (often 36% preferred)
FHA loan 43-50% with compensating factors
VA loan 41% typical, up to 60% in some cases
Personal/auto loans Varies, 43% common

How to Improve Your DTI

  • Pay down credit card balances — lowers minimum payments quickly
  • Pay off small loans early — removes entire payments from your ratio
  • Increase income — side hustle, raise, or new job with higher pay
  • Lower the mortgage amount — bigger down payment = smaller payment
  • Wait and refinance — if rates drop, your housing payment drops too

How DTI Is Calculated

The Formula

Front-end DTI = Monthly housing costs ÷ Gross monthly income × 100. Back-end DTI = (Housing + all other debt payments) ÷ Gross monthly income × 100. Lenders typically cap front-end at 28% and back-end at 36% for conventional loans.

DTI Example

Worked Example

With $85,000 annual income, a $2,000 housing payment and $1,000 in other debt payments, the front-end DTI is 28.2% and the back-end DTI is 42.4% — the front-end qualifies, but the back-end is above most lenders' 36% cap, so reducing other debt would improve approval odds.

Frequently Asked Questions

What is a good DTI ratio?

For mortgages, lenders prefer back-end DTI below 36%. A ratio under 28% is considered excellent. For most loans, staying under 43% keeps you in the "qualified" range. Above 50%, most lenders will reject your application.

Does DTI include utilities and groceries?

No. DTI only includes debts that appear on your credit report and housing costs. Utilities, groceries, insurance (non-mortgage), and everyday spending are not counted by lenders.

What's the difference between DTI and credit score?

DTI measures your income vs debt load — lenders use it for affordability. Your credit score measures your history of repaying debt — lenders use it for reliability. Both matter: you can have a great score but fail DTI if your debts are too high for your income.