Your debt-to-income ratio (DTI) is the single number lenders use to decide whether you can afford another loan. It compares how much you owe every month to how much you earn, and it shapes everything from mortgage approval to the interest rate you are offered. This calculator computes both your front-end (housing) ratio and your back-end (total debt) ratio against your gross monthly income, so you can see exactly where you stand before you apply.
Enter your gross household income and each recurring monthly debt below. The result card updates instantly, showing your total monthly debt, both ratios, the 36% spending ceiling lenders like to see, and a plain-language assessment of whether your profile looks strong, acceptable, or overextended.
How to Use
- Enter your Gross Monthly Income — your total household pay before taxes, health insurance, and retirement contributions are withheld. Include salary, overtime, bonuses averaged over the year, alimony, and any steady side income a lender would count.
- Fill in your Monthly Housing Payment — rent, or your mortgage principal and interest plus property tax, homeowner's insurance, and HOA dues. This figure drives the front-end ratio.
- Add your Student Loan Payment, Car Loan Payment, and Credit Card Minimums. Use the minimum payment due on credit cards, not the full statement balance.
- Enter anything else in Other Monthly Debts — personal loans, a HELOC payment, alimony, or child support. If a category does not apply, leave it at 0.
- Read the result card: Total Monthly Debt is the sum of every obligation; Front-End Ratio is housing alone as a share of income; Back-End Ratio is all debt combined — this is the DTI lenders quote.
- Compare your back-end ratio to the 36% recommended ceiling. Anything at or below 36% is comfortable; above 43% is the hard limit most Qualified Mortgage rules allow.
How DTI Is Calculated
The Consumer Financial Protection Bureau defines DTI as your total monthly debt payments divided by your gross monthly income, expressed as a percentage:
DTI = Total Monthly Debt Payments ÷ Gross Monthly Income × 100
There are two versions of the ratio:
- Front-end ratio (housing ratio): your housing payment alone divided by gross income. Conventional lenders prefer this at or below 28%.
- Back-end ratio (total debt ratio): housing plus all other recurring debt divided by gross income. Most lenders prefer this at or below 36%, and the Qualified Mortgage rule caps it near 43% for most loans.
For example, a household earning $6,500 gross per month with $1,800 in rent, $350 in student loans, $300 in a car payment, and $200 in credit card minimums carries $2,650 of total monthly debt. The front-end ratio is 1,800 ÷ 6,500 = 27.7%, and the back-end ratio is 2,650 ÷ 6,500 = 40.8%. That back-end number is high enough that a lender would likely ask for a larger down payment, a higher credit score, or a co-signer.
What Counts as Monthly Debt
Lenders count obligations that show up on your credit report or a court order. That includes mortgage or rent, student loans, auto loans, lease payments, credit card minimums, personal loans, HELOC payments, alimony, and child support. They generally do not count utility bills, cell phone bills, gym memberships, groceries, or childcare — even though those are real monthly costs, because they are not debts you owe a creditor.
Use gross income, not take-home pay. A lender underwrites against what you earn before deductions, so a $6,500 gross salary that nets $5,000 after taxes still uses $6,500 in the denominator. If you use net pay by mistake, your ratio will look smaller and your approval may fall through.
Examples
Example 1 — A borderline borrower. Maria earns $6,500 gross per month. She pays $1,800 in rent, $350 in student loans, $300 on her car, and $200 in credit card minimums. Her total monthly debt is $2,650, giving a front-end ratio of 27.7% and a back-end ratio of 40.8%. She is close to the 43% cap; paying off the $200 credit card balance drops her back-end ratio to 37.7%, which is far more comfortable.
Example 2 — A strong applicant. David earns $8,000 gross per month. His housing payment is $1,500, he has a $200 student loan, no car payment, and $100 in credit card minimums. Total debt is $1,800, so his front-end ratio is 18.8% and his back-end ratio is 22.5%. Well under the 28% and 36% benchmarks, he should qualify for the best rates on a conventional mortgage.
Example 3 — A high-income stress test. On a gross monthly income of $1,200,000 with $400,000 in housing and $110,000 in other debts, total monthly debt is $510,000. The front-end ratio is 33.3% and the back-end ratio is 42.5% — illustrating that even very large incomes can carry too much debt relative to themselves, which is exactly why the ratio is a percentage rather than a dollar amount.
FAQ
What is a good debt-to-income ratio?
A back-end ratio at or below 36% is considered healthy, with no more than 28% going to housing alone. Ratios under 20% are excellent and signal room to borrow. Between 36% and 43% you may still qualify, but expect higher rates or stricter requirements. Above 43%, most lenders will decline a new loan.
Do lenders use gross or net income for DTI?
Lenders use gross monthly income — your pay before taxes and deductions. This is why your DTI can feel higher than your budget suggests: the ratio compares debt to your full salary, not to the smaller amount that actually hits your bank account.
Is rent included in my DTI?
Yes. Housing costs, whether rent or a mortgage, are the largest component of the front-end ratio. Rent matters especially for first-time buyers who have never had a mortgage; lenders often require proof of on-time rent payments to build a housing track record.
What is the difference between front-end and back-end ratio?
The front-end (housing) ratio divides only your housing payment by gross income. The back-end (total debt) ratio divides housing plus every other recurring debt — student loans, car loans, credit cards, alimony — by gross income. When lenders quote "your DTI," they almost always mean the back-end number.
How can I lower my DTI quickly?
Pay down or pay off small balances first — credit cards and personal loans — because removing a $200 minimum payment reduces your total debt dollar-for-dollar. Avoid taking on a new car loan or opening new credit cards before applying for a mortgage. You can also increase your gross income, but paying off debt is the faster lever.
Does DTI affect my credit score?
No. Your credit score (FICO) does not include income at all, so DTI never appears in your score. However, high DTI predicts default risk, which is why lenders evaluate it separately from your score. You can have an excellent credit score and still be denied a loan because your DTI is too high.
Disclaimer
This debt-to-income calculator is provided for informational purposes only and does not constitute financial, lending, or tax advice. DTI thresholds vary by lender, loan program, credit profile, and local market; the 28% and 36% benchmarks are common rules of thumb, not universal rules. Always confirm your exact ratio and eligibility directly with a licensed mortgage lender or credit counselor before making a borrowing decision.