Debt-to-Income (DTI) Calculator

Calculate your DTI ratio and see if you qualify for mortgages, auto loans, and other credit products. Get personalized recommendations based on lender guidelines.

Front-End RatioBack-End RatioLender GuidelinesExport PDF/CSV

Debt-to-Income (DTI) Calculator

Calculate your debt-to-income ratio and see if you qualify for major loans

Monthly Income

Housing Expenses

Debt Obligations

Results & Analysis

What is Gross Monthly Income?

This is your total monthly income before taxes and deductions. Include salary, bonuses, commissions, rental income, and any other regular income sources.

Gross Monthly Income

Annual income: $60,000.00

Income Sources to Include:

• Base salary or hourly wages
• Bonuses and commissions (if regular)
• Rental property income
• Investment dividends
• Social Security or pension income
• Child support or alimony (if you want to include)

What is Debt-to-Income Ratio?

Your debt-to-income (DTI) ratio is a personal finance measure that compares your monthly debt payments to your gross monthly income. Lenders use DTI to evaluate your ability to manage monthly payments and repay borrowed money.

A lower DTI ratio indicates a good balance between debt and income, making you a more attractive borrower. Most lenders prefer a DTI of 36% or less, though requirements vary by loan type.

Two Types of DTI Ratios

Front-End Ratio

Also called the housing ratio, this measures what percentage of your income goes toward housing costs only.

(Mortgage + Taxes + Insurance + HOA) / Gross Income

Ideal: Below 28%

Back-End Ratio

This measures your total monthly debt obligations, including housing, as a percentage of income.

All Monthly Debt Payments / Gross Income

Ideal: Below 36%

DTI Ratio Guidelines

<20%

Excellent

You have significant room for additional debt. Best rates available.

20-35%

Good

Healthy debt level. You qualify for most loan products.

36-43%

Acceptable

Near the limit for conventional loans. FHA/VA loans available.

43-50%

Concerning

Limited loan options. Focus on debt reduction before new credit.

>50%

High Risk

Unlikely to qualify for new credit. Prioritize debt payoff immediately.

DTI Requirements by Loan Type

Loan Type	Max Front-End	Max Back-End
Conventional	28%	36-43%
FHA	31%	43%
VA	No limit	41%
USDA	29%	41%
Jumbo	28%	36-38%

* Requirements may vary by lender. Strong compensating factors (high credit score, large down payment, significant assets) may allow higher DTI ratios.

How to Improve Your DTI Ratio

Reduce Debt

•Pay off credit card balances
•Pay off small loans entirely
•Avoid taking on new debt
•Consider debt consolidation

Increase Income

•Negotiate a raise at work
•Start a side hustle
•Document all income sources
•Add a co-borrower with income

Related Financial Tools

Mortgage Calculator

Calculate monthly mortgage payments

Mortgage Affordability

See how much house you can afford

Debt Payoff Calculator

Plan your debt-free journey

Budget Planner

Track income and expenses

Frequently Asked Questions

What debts are included in DTI calculations?

Include all monthly debt obligations: mortgage/rent, car loans, student loans, credit card minimum payments, personal loans, alimony, child support, and any other recurring debt payments. Do not include utilities, groceries, insurance (except home/mortgage insurance), or other living expenses.

Is a 40% DTI ratio bad?

A 40% DTI is concerning and limits your loan options. Most conventional lenders prefer 36% or lower. At 40%, you may qualify for FHA or VA loans, but with less favorable terms. You should focus on reducing debt or increasing income before taking on new obligations.

Do lenders use gross or net income for DTI?

Lenders use gross monthly income (before taxes and deductions) to calculate DTI. This includes salary, bonuses, commissions, rental income, alimony, child support, and other regular income sources.

Will paying off debt improve my DTI immediately?

Yes! Paying off or paying down debt reduces your monthly obligations, which immediately improves your DTI ratio. Focus on debts with the highest monthly payments for the biggest DTI impact.

Can I get a mortgage with a high DTI?

It depends on the loan type. FHA loans allow DTI up to 43%, and some lenders may approve conventional loans up to 45% with strong compensating factors (high credit score, large down payment, cash reserves). However, higher DTI means higher risk and potentially higher interest rates.

Should I include student loans in forbearance or deferment?

Yes, in most cases. Even if your student loans are in forbearance or deferment, lenders typically still include them in DTI calculations using either the actual payment amount or 1% of the outstanding balance as an estimated payment.

Explore More Financial Tools

Use our suite of free financial calculators to plan your financial future with confidence.

View All Tools