Free DTI Calculator

Debt-to-Income Ratio Calculator

Calculate your front-end and back-end DTI ratios and instantly see whether you qualify for conventional, FHA, VA, or USDA loans — with real lender thresholds.

28/36
Conventional rule
Fannie Mae guidelines
43%
Max back-end (most loans)
CFPB guideline

DTI Ratio Calculator

1Monthly Gross Income

$6,500

Before taxes. Include all verifiable income sources.

$
$

2Housing Costs (Front-End)

$1,450

Mortgage/rent, property taxes, insurance, HOA, PMI.

$

3Other Monthly Debts (Back-End)

$675

Car loans, student loans, credit card minimums, personal loans.

$
$
$

Enter your income and debt payments, then click Calculate My DTI

What Is DTI and Why Does It Matter?

DTI (Debt-to-Income ratio) is the percentage of your gross monthly income that goes toward debt payments. It's the #1 factor lenders use — after credit score — to determine whether you can handle a new loan. A lower DTI means you have more income relative to your debt obligations.

There are two DTI numbers lenders care about, both calculated using your gross monthly income (before taxes):

Front-End DTI (Housing Ratio)
Housing Costs (PITI)Gross Monthly Income
Target: ≤ 28%
Back-End DTI (Total DTI)
All Monthly Debt PaymentsGross Monthly Income
Target: ≤ 36–43%

DTI Rating Scale

Below 20%Excellent

Very low debt load — excellent financial health. Best rates available.

20–35%Good

Manageable debt. Qualifies for most conventional loans at good rates.

35–43%Fair

Getting tight. Qualifies for most mortgages but may face scrutiny.

43–50%High

FHA-territory only. Strong credit and reserves needed. Work on reducing.

Above 50%Too High

Most lenders will decline. Focus on reducing debt before applying.

What Counts as Debt in Your DTI?

Counted in DTI
  • Mortgage / rent payment
  • Property taxes + insurance
  • HOA fees + PMI
  • Car loan payments
  • Student loan payments
  • Credit card minimums
  • Personal loan payments
  • Child support / alimony
  • Co-signed loan payments
NOT Counted in DTI
  • Utilities (gas, electric, water)
  • Cell phone bills
  • Groceries / food
  • Health insurance premiums
  • Car insurance
  • Streaming subscriptions
  • Gym memberships
  • Medical bills (not in collections)
  • Retirement contributions

How to Lower Your DTI Before Applying

  • Pay off a car loan or personal loan. Eliminating a $400/month payment can add $50,000+ to your mortgage qualification under the 36% rule on a $100K income.
  • Consolidate credit card debt. A personal loan replaces multiple minimum payments with one lower payment — potentially reducing your monthly obligations by $200–$400.
  • Don't take on new debt before applying. No new car loans, furniture financing, or credit card spending in the 6–12 months before your mortgage application.
  • Add a co-borrower. A spouse or partner's income is added to the denominator, lowering your combined DTI significantly.
  • Document all income. Side gig income, rental income, and investment income can all count if you can document 2 years of history via tax returns.
FAQ

DTI Calculator — Common Questions

What is a good debt-to-income ratio?
Below 36% is ideal for conventional mortgage qualification. Below 28% front-end (housing only) and 36% back-end (all debts) is the traditional banker's standard. Below 20% is excellent — you're in strong financial shape. 36–43% is fair — most lenders will work with you. Above 43% starts to limit your options. Above 50% is a major obstacle for most loan types.
What payments does a lender count in my DTI?
Lenders count minimum monthly payments on anything appearing on your credit report: mortgage or proposed mortgage payment (PITI), all loan minimum payments (car, student, personal), credit card minimum payments, child support and alimony, and any co-signed loan payments. They do NOT count: utilities, cell phone bills, insurance, groceries, subscriptions, gym memberships, or any payment not on your credit report.
What is the difference between front-end and back-end DTI?
Front-end DTI (housing ratio) = total housing costs ÷ gross monthly income. This includes your mortgage P&I, property taxes, homeowner's insurance, HOA fees, and PMI if applicable. Most lenders want this below 28–31%. Back-end DTI (total DTI) = all monthly debt payments ÷ gross monthly income. This includes housing plus every other debt. Most lenders want this below 36–43%.
How can I lower my DTI to qualify for a mortgage?
Reduce debt payments: pay off or consolidate high-payment debts before applying (car loans, personal loans, credit cards). Even eliminating a $300/month car payment can increase your mortgage qualification by $40,000–$50,000. Increase income: add a co-borrower, document self-employment income properly, or wait for a raise. Don't take on new debt in the 6–12 months before applying.
Can I get a mortgage with a high DTI?
Yes — with compensating factors. A large down payment (20%+), excellent credit score (760+), significant cash reserves (12+ months of payments), and strong employment history can allow lenders to approve higher DTIs. FHA allows up to 50% back-end DTI with compensating factors. VA has no hard DTI limit. Some non-QM lenders go even higher but at much higher rates.
Does student loan debt affect my DTI?
Yes. Lenders count student loan payments in your DTI. If you're on an Income-Driven Repayment plan, conventional lenders typically use 0.5–1% of your total student loan balance per month even if your actual payment is lower. FHA uses the actual IDR payment if greater than $0. This can significantly impact your DTI if you have large student loan balances with low IDR payments.

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