Debt-to-Income (DTI) Ratio Calculator
Enter gross monthly income and recurring debt payments (housing, car, credit cards, student loans, other). Returns front-end DTI (housing only) and back-end DTI (total debt) plus a category — excellent, good, fair, or poor — using the same thresholds most US lenders use.
Monthly debt payments
- Back-end DTI (total)
- 39.2%
- Front-end DTI (housing only)
- 25%
- Total monthly debt
- 2,350
Above the conventional 36% limit but under the 43% qualified-mortgage cap. FHA and some non-QM lenders may still approve, but rates trend higher.
How it works
What DTI actually measures
Debt-to-income ratio is the percentage of your gross monthly income that goes to required debt payments. It is the single biggest factor in whether a US lender approves a mortgage, after credit score. Two flavors exist: front-end (housing only) and back-end (housing plus all other debt). Lenders look at both, but back-end carries more weight.
The 28/36 rule is the standard heuristic: front-end ≤28%, back-end ≤36%. Conventional mortgages allow up to 43% back-end (the 'qualified mortgage' cap from the CFPB). FHA loans allow up to about 50% in some cases. The lower your DTI, the more likely you are to be approved and the better the rate you get.
Why both ratios matter
Front-end isolates housing risk. A high front-end DTI means you'd be 'house poor' — most of your paycheck goes to keeping the roof. Lenders worry that any income disruption leaves no margin for the mortgage payment.
Back-end captures total financial obligation. Two applicants with identical front-end DTI can have very different total burdens once student loans, car payments, and credit cards are added. Back-end is what the underwriter actually decides on.
Use both to plan affordability before house-hunting. If your back-end is already 30%, a $2000 mortgage on $6000 income (33% front-end) pushes back-end to 63% — a near-certain decline.
Which payments count
Include any debt that appears on your credit report and has a required minimum payment: mortgage P&I+taxes+insurance, rent, car loans, student loan minimum (income-driven plans use the actual IDR amount, not standard), credit card minimums, personal loans, child support, alimony.
Don't include non-debt expenses: groceries, utilities, gas, insurance not bundled into housing, retirement contributions, taxes withheld. Those affect your budget, but DTI isolates debt servicing only.
Use the minimum required payment for revolving credit, not what you actually pay. Lenders calculate worst-case capacity. If your card minimum is $40 but you pay $400 monthly, the DTI input is $40.
Frequently asked questions
›What's the difference between front-end and back-end DTI?
Front-end is housing payment / income. Back-end is total debt / income (housing + every other minimum payment). Lenders look at both but weight back-end more.
›Does paying off a credit card affect DTI?
Paying the balance to zero doesn't change DTI by itself — DTI uses the minimum payment, not the balance. Closing the card removes the minimum entirely. To meaningfully drop DTI, eliminate the minimum payment line item.
›Are utilities counted in DTI?
No. DTI is debt-only. Utilities, insurance, groceries, and other necessary expenses don't appear in the calculation, even though they affect your budget.
›What DTI do mortgage lenders actually accept?
Conventional: 36% back-end ideal, 45% sometimes with strong credit/reserves. FHA: up to 50% back-end with compensating factors. VA: flexible, manual underwrite at 41%+.
›Does my spouse's income/debt count?
Only if they're co-applicants on the loan. If they're not on the application, neither their income nor debt counts. This is sometimes used strategically when one spouse has worse credit.
›How do I lower my DTI quickly?
Three options ranked by effectiveness: pay off small debts to eliminate minimum payments (fastest impact), increase income (slower but durable), refinance long debts to longer terms (lower minimum but more total interest).
›Are student loans on income-driven repayment counted at the IDR amount?
Yes for most conventional and FHA underwriting since 2021 — they use the actual IDR payment. Some still use 1% of balance as a fallback. Ask your loan officer which method.
›Does the calculation leave my browser?
No. All numbers are processed locally in your browser; nothing is sent to any server.
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