Debt-to-Income Ratio Calculator
Adjust the inputs below. Results update as you type.
How it works
Front-end DTI = housing costs / gross income. Back-end DTI = all debt payments / gross income. Conventional mortgage lenders prefer back-end DTI below 43%; FHA allows up to 50% with compensating factors. Include all minimum payments: mortgage/rent, car loans, student loans, credit cards, and any other installment debt. Reducing DTI before applying improves terms.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
DTI = total monthly debt payments ÷ gross monthly income, expressed as a percentage. Lenders look at both front-end (housing only) and back-end (all debt) ratios.
Worked example
With $2,000 in monthly debt payments and $6,000 gross income, DTI = 2000 ÷ 6000 = 33%, generally within the range most lenders accept.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
Improve your DTI before applying for a loan
Pre-qualification offers depend on your credit profile.
Frequently asked questions
What DTI do lenders want?+
Many prefer a back-end DTI at or below 36%, though some loan programs allow higher. Lower ratios improve approval odds and rates.
What counts as debt?+
Recurring obligations: mortgage or rent, car loans, student loans, credit card minimums, and other loan payments — not utilities or groceries.
How do I lower my DTI?+
Pay down balances, avoid new debt, or increase income. Even paying off one small loan can move the ratio into a better range.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.
Guided next steps
Want the full workflow? Use this calculator inside a step-by-step guide.