Debt-to-Income Ratio Calculator
Calculate your front-end and back-end DTI ratios to understand your debt load and assess your likelihood of mortgage or loan approval.
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How to use this calculator
Front-end DTI = housing costs only. Back-end DTI = all monthly debt obligations. Both are expressed as a percentage of gross monthly income.
- 1
Enter your monthly gross income (before taxes and deductions).
- 2
Enter all recurring monthly debt payments: housing, car, student loans, credit card minimums, and other debts.
- 3
Review your front-end DTI (housing only) and back-end DTI (all debts).
- 4
Compare against thresholds: lenders typically want front-end ≤ 28% and back-end ≤ 36–43%.
Frequently asked questions
What DTI do mortgage lenders require?
Most conventional lenders want a back-end DTI of 43% or lower. FHA loans may allow up to 50% with compensating factors. Fannie Mae allows up to 45–50% for well-qualified borrowers. The "28/36 rule" is a conservative guideline: housing ≤ 28%, total debts ≤ 36%.
Does DTI affect my interest rate?
Indirectly. A high DTI may disqualify you from certain loan products or push you toward higher-rate options. A low DTI combined with a high credit score gives you access to the best rates. Lenders price risk on both metrics simultaneously.
Is gross or net income used?
Lenders use gross income (before taxes). Some government loan programs use net income for affordability assessments. This calculator uses gross income to match lender standards.
What expenses are NOT counted as debt?
Utilities, groceries, insurance premiums, subscriptions, and taxes are not debt obligations and are excluded from DTI. Only legally obligated monthly payments (loan installments, minimum credit card payments, lease payments) count.
Understanding your debt-to-income ratio
Front-end vs back-end DTI
Front-end (or housing) DTI includes only your housing costs — mortgage principal and interest, property taxes, homeowner's insurance, and HOA fees (PITI + HOA). Back-end DTI adds all other monthly debt obligations. Mortgage lenders evaluate both; the 28/36 guideline means housing below 28% of income and all debts below 36%.
How to lower your DTI before applying
Pay down revolving debt (credit cards) to reduce minimum monthly obligations. Avoid taking on new debt before applying. If possible, increase income through a raise, side income, or a co-borrower. Even a few months of targeted paydown can move your DTI below a critical threshold and improve loan terms significantly.
DTI limits by loan type
Conventional loans: typically 45% max back-end. FHA loans: 43% standard, up to 50% with compensating factors. VA loans: 41% guideline but no hard cap. USDA loans: 41% back-end. Jumbo loans: 43% or lower, often stricter. The lower your DTI relative to the limit, the more favorable your terms.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →