Debt-to-Income (DTI) Ratio Calculator
Lenders look at your debt-to-income ratio before approving a mortgage or loan. Enter your income and monthly debts to see your front-end and back-end DTI and how much house payment fits common guidelines.
Back-end DTI (all debts)
How to calculate debt-to-income ratio
- Enter your gross (before-tax) monthly income from all borrowers on the application.
- Enter your housing payment, or the proposed new mortgage payment including property tax, insurance and HOA dues.
- Add the minimum monthly payment on every other debt that shows on your credit report.
What lenders consider a good DTI
DTI is your monthly debt payments divided by gross monthly income. Front-end DTI counts only housing; back-end DTI counts housing plus all other debts. Living expenses such as utilities, groceries and insurance premiums are not included.
The classic 28/36 rule says housing should stay under 28% of gross income and total debt under 36%. Many conventional loans go up to 45%, or even 50% with strong credit and savings, and FHA loans can exceed 43% when the automated underwriting system approves it. A DTI under 36% gives you the most options and the best rates.
To lower your DTI, pay down revolving balances (which lowers minimum payments), avoid new loans before applying, or add a co-borrower's income. Paying off a loan with only a few payments left can also help, since some lenders exclude debts with fewer than 10 payments remaining.
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Frequently asked questions
What is a good debt-to-income ratio?
Under 36% is considered good; under 43% generally qualifies for a mortgage; above 50% makes most loans difficult.
Is DTI based on gross or net income?
Gross income, before taxes and deductions.
Do utilities count in DTI?
No. Only debt payments that appear on your credit report, plus housing and court-ordered payments.
Does DTI affect my credit score?
No. Credit scores consider credit utilization, not income, but lenders use DTI alongside your score.