Debt-to-Income (DTI) Calculator

How to read your DTI ratio

Enter your gross monthly income, your monthly housing payment and your other recurring debt payments. The calculator shows both your front-end and back-end DTI and rates how lenders are likely to view it.

Formula

• Front-end DTI = housing payment ÷ gross monthly income × 100%.
• Back-end DTI = (housing + all other debts) ÷ gross monthly income × 100%.

Lender guidelines (back-end)

• 36% or less: excellent — ideal for most lenders.
• 37%–43%: good — within the Qualified Mortgage limit.
• 44%–50%: caution — possible with compensating factors.
• Above 50%: high — most lenders will decline.

Guidelines vary by lender and loan program. This is an estimate, not a loan offer or approval.

Frequently Asked Questions

What is a debt-to-income ratio?

DTI is your total monthly debt payments divided by your gross (pre-tax) monthly income, expressed as a percentage. Lenders use it to gauge how much of your income is already committed to debt.

What is the difference between front-end and back-end DTI?

Front-end DTI counts only housing costs (mortgage or rent, plus taxes and insurance) against income. Back-end DTI counts all monthly debt — housing plus car loans, student loans, credit cards and other obligations.

What DTI do I need to qualify for a mortgage?

Many lenders prefer a back-end DTI of 36% or less, and 43% is the typical maximum for a Qualified Mortgage. Some loan programs allow up to about 50% with strong credit, reserves or other compensating factors.

How can I lower my DTI?

Pay down or pay off existing debts, avoid taking on new loans before applying, and increase your qualifying income. Reducing high-payment debts like car loans often helps the most.