Debt-to-Income Ratio Calculator
Calculate your DTI ratio — the figure mortgage lenders use to decide if you can afford a loan.
Monthly Debt Payments
Your monthly housing payment
Minimum payments only
Personal loans, child support, etc.
Income
Use your GROSS pay — the figure before tax and deductions, not your take-home pay
Your Debt-to-Income Ratio
36.9%
$2,400 debt ÷ $6,500 income
Manageable. Between 36% and 43% — many lenders still approve here, but you have less room. Paying down a balance helps.
Lender View
Manageable
≤36% healthy · 36–43% manageable · >43% high
Where You Land
The Two Ratios Mortgage Lenders Use
Lenders apply the “28/36 rule” — housing alone should stay under 28%, and all debt under 36%.
Front-End DTI
Healthy24.6%
Housing only · target ≤ 28%
Back-End DTI
Manageable36.9%
All debt · target ≤ 36%
Total Monthly Debt
$2,400
All payments added together
Income Left After Debt
$4,100
Gross income minus debt payments
To reach a healthy DTI of 36%, cut your monthly debt payments by $60 — for example, by paying off a balance whose minimum is about that much. (Or raise your gross income to $6,667/mo.)
How to use this calculator
- Enter each monthly debt payment — rent or mortgage, car loans, credit-card minimums, student loans, and any other debt.
- Enter your gross monthly income — your pay before tax and deductions, not your take-home pay.
The calculator shows your back-end DTI, your front-end (housing-only) DTI, where you land against the lender thresholds, and how much debt you would need to clear to reach a healthy ratio.
How it works
Debt-to-income ratio is simply your monthly debt payments divided by your gross monthly income, shown as a percentage. Lenders use it to gauge whether you can afford a new loan, and they look at it two ways — the 28/36 rule:
- Front-end DTI — your housing payment alone ÷ gross income. The guideline is 28% or below.
- Back-end DTI — all monthly debt payments ÷ gross income. The guideline is 36% or below, though many lenders approve up to 43%.
The verdict bands this calculator uses for back-end DTI:
- Healthy — 36% or below. Comfortable, with the widest lending options.
- Manageable — 36% to 43%. Often still approvable, but with less margin.
- High — above 43%. Most lenders see this as too much debt for a new mortgage.
Because lenders calculate DTI on gross income, entering take-home pay is the most common mistake — it makes your ratio look worse than the lender’s own figure.
The limits of an estimate
This calculator uses the standard 28/36 thresholds, but every lender sets its own limits and weighs DTI alongside your credit score, down payment and savings. It is an excellent way to see where you stand and what to pay down before applying — but the final decision, and the exact ratio a lender uses, rests with them.
Frequently Asked Questions
What is a good debt-to-income ratio? ▾
For your back-end DTI — all monthly debt payments divided by gross monthly income — 36% or below is considered healthy and gives you the most lending options. Between 36% and 43% is manageable: many lenders still approve, but you have less room. Above 43% is high, and most lenders treat it as too much debt for a new mortgage. Lower is always better; under 36% is the figure to aim for.
How do lenders use my DTI ratio? ▾
Lenders use DTI to judge whether you can comfortably take on a new loan payment. They actually look at two ratios — the '28/36 rule'. The front-end ratio is your housing payment alone divided by gross income, ideally 28% or less. The back-end ratio is all your debt payments divided by gross income, ideally 36% or less (some lenders stretch to 43%). A strong DTI can also help you qualify for a better interest rate.
What is the difference between front-end and back-end DTI? ▾
Front-end DTI counts only your housing cost — rent or the full mortgage payment — against your gross income; lenders like it at 28% or below. Back-end DTI counts every monthly debt payment — housing plus car loans, credit-card minimums, student loans and any other debt — against gross income, with 36% the healthy target. Back-end is the headline number, but a mortgage lender checks both, which is why this calculator shows each one.
What counts as debt in a DTI calculation? ▾
DTI counts recurring monthly debt obligations: your rent or mortgage payment, car loans, the minimum payments on credit cards, student loans, personal loans, and court-ordered payments such as child support or alimony. It does not count everyday living costs like groceries, utilities, phone bills or insurance premiums — those are expenses, not debt. Enter the true monthly payment for each debt category.
Should I use gross or net income for DTI? ▾
Always use gross income — your pay before tax and deductions, the larger figure on your pay stub. Lenders calculate DTI on gross income, so entering your take-home (net) pay would make your ratio look worse than the lender's own figure. If your income varies, use a conservative monthly average.
What DTI do I need to qualify for a mortgage? ▾
Most conventional mortgages want a back-end DTI at or below 36%, though many lenders approve up to 43%, and some government-backed loans go higher with compensating factors like a strong credit score or large down payment. The front-end (housing) ratio is typically expected at 28% or below. If your DTI is above these levels, paying down a balance before applying — or choosing a less expensive home — is the most direct way to qualify.