FINANCIAL · DEBT-TO-INCOME RATIO
Debt-to-Income Ratio Calculator
Calculate your front-end and back-end debt-to-income (DTI) ratio to see if you qualify for a mortgage or other loan. Includes lender tier guidance.
About This Calculator
Your debt-to-income (DTI) ratio is the single most important number lenders look at when you apply for a mortgage or loan. Enter your income and monthly debt obligations to see your front-end and back-end DTI — and whether lenders are likely to approve you.
How It Works
Enter your gross (pre-tax) monthly or annual income, your monthly housing costs (mortgage or rent, property taxes, insurance, HOA), and all other monthly debt payments (car, student loans, credit cards). The calculator computes two ratios: the front-end DTI (housing costs only) and the back-end DTI (all debts combined). Lenders primarily use the back-end DTI — generally, ≤36% is healthy, 36–43% is in the caution zone, and above 43% makes most conventional loans difficult to qualify.
The Formula
Front-end DTI = Housing Costs / Gross Monthly Income × 100 Back-end DTI = Total Monthly Debts / Gross Monthly Income × 100
- Housing Costs
- Mortgage or rent + property taxes + insurance + HOA fees (monthly)
- Total Monthly Debts
- All housing costs + car loans + student loans + credit card minimums + other debts
- Gross Monthly Income
- Pre-tax income per month (annual income ÷ 12)
Frequently Asked Questions
- What is a good DTI ratio?
- Most conventional lenders prefer a back-end DTI at or below 36%. Fannie Mae allows up to 45% with strong compensating factors (high credit score, large down payment). FHA loans allow up to 43% as a standard limit and 50% with compensating factors. The CFPB's "Qualified Mortgage" rule caps back-end DTI at 43% for most loans.
- What is the difference between front-end and back-end DTI?
- Front-end DTI (also called the housing ratio) includes only your monthly housing costs — mortgage/rent, property taxes, insurance, and HOA fees — divided by gross income. Back-end DTI (the full DTI) includes all of those plus every other recurring debt payment. Lenders look at both, but back-end DTI carries more weight.
- Does DTI affect my credit score?
- No — DTI is not part of your credit score calculation. However, high utilization on credit cards (a component of your score) contributes to your DTI and vice versa. Lenders check both your credit score and your DTI when making a lending decision.
- How can I improve my DTI?
- Two levers — increase income or decrease debt. On the debt side, paying off or consolidating small-balance loans, reducing credit card minimums (by paying down balances), or refinancing car loans can meaningfully lower your ratio. On the income side, adding a second income source or documenting additional qualifying income (rental income, side business) raises the denominator.
- Is rent included in the front-end DTI?
- Yes. If you are renting, enter your monthly rent as the housing payment. If you are applying for a mortgage, enter the projected monthly payment (principal + interest) for the new loan, plus the property taxes, insurance, and HOA if applicable.