💰 Finance calculator

Debt-to-Income Calculator

Calculate your debt-to-income (DTI) ratio — the number lenders use to decide whether to approve your mortgage, car loan, or personal loan. Enter your monthly gross income and debt payments to see your DTI and whether it falls in a lender-friendly range.

Enter your monthly income and debts

Use gross monthly income (before taxes). Include all recurring monthly debt payments — not utilities, groceries, or subscriptions.

Monthly debt payments — enter what applies to you:

DTI thresholds (general)

Under 36% — Excellent, most lenders approve
36–43% — Acceptable for many loan types
43–50% — Harder to qualify, limited options
Above 50% — Most lenders will decline

Front-end vs back-end DTI

Front-end: housing costs only ÷ income
Back-end: all debts ÷ income
Lenders use both — most focus on back-end. Conventional loans typically want back-end under 43%.

Tip: the "new loan payment" field lets you model a future mortgage or loan before you apply — see how it changes your DTI before committing.
DTI thresholds vary by lender, loan type, and credit profile. This calculator is for educational planning only. Consult a mortgage broker or lender for your actual qualification criteria.

What is debt-to-income ratio?

Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward paying debts. It is one of the most important numbers lenders look at when deciding whether to approve a mortgage, car loan, or personal loan.

A lower DTI signals to lenders that you have enough income to handle a new payment comfortably. A high DTI suggests you are already stretched and may struggle with additional debt — making approval harder and interest rates higher.

DTI formula

There are two DTI ratios lenders use:

Front-end DTI = Monthly housing costs ÷ Gross monthly income × 100
Back-end DTI = Total monthly debt payments ÷ Gross monthly income × 100

Example:

Gross income: $6,500/month
Mortgage: $1,800 · Car: $420 · Credit cards: $120 = Total $2,340
Back-end DTI = $2,340 ÷ $6,500 × 100 = 36.0%
Front-end DTI = $1,800 ÷ $6,500 × 100 = 27.7%

How to use this DTI calculator

  1. Enter your gross monthly income — before taxes, not take-home pay.
  2. Optionally enter a new loan payment you are considering (mortgage, car, etc.).
  3. Enter your current monthly debt payments: mortgage/rent, car loans, student loans, credit card minimums, and any other recurring debts.
  4. Do NOT include utilities, insurance, groceries, or subscriptions — these are not debt payments.
  5. Click Calculate DTI to see your front-end and back-end DTI ratios.

DTI thresholds by loan type

Conventional loans: Back-end DTI under 43% preferred, up to 50% with strong compensating factors
FHA loans: Front-end under 31%, back-end under 43% — more flexible with lower credit scores
VA loans: No strict front-end limit, back-end guideline of 41% — but residual income matters more
USDA loans: Front-end under 29%, back-end under 41% — for rural/suburban properties
Personal loans: Lenders typically want back-end DTI under 36–40% for best rates

How to lower your DTI before applying

If your DTI is too high, you have two levers:

Increase income: A side income, raise, or second earner raises the denominator and lowers DTI immediately.
Pay down debt: Eliminating a car loan or paying off credit cards reduces the numerator. Even removing one monthly payment of $200–400 can shift DTI by 3–6 percentage points.
Avoid new debt: Any new credit inquiry or new monthly payment before applying raises your DTI and can derail an approval.

Frequently asked questions

What is a good debt-to-income ratio?

Most lenders consider a back-end DTI under 36% excellent. DTI between 36–43% is generally acceptable for most loan types. Above 43% becomes harder to qualify, and above 50% most conventional lenders will decline. The lower, the better.

Do I use gross or net income for DTI?

Always use gross income — your income before taxes and deductions. Lenders use gross because it is consistent and verifiable. Using net (take-home) pay would give you a different and higher DTI ratio.

Does rent count as a debt for DTI?

Yes — your current rent or mortgage payment counts as a housing expense in your front-end DTI. If you are applying for a new mortgage, lenders use the projected new payment, not your current rent, to calculate the front-end ratio.

Do utilities and subscriptions count toward DTI?

No. Utilities, phone bills, insurance, groceries, and subscriptions are not debt payments and are not included in DTI. Only recurring debt obligations — loans, leases, and minimum credit card payments — count.

Can I get a mortgage with a DTI above 43%?

Yes, but it becomes harder. FHA loans allow up to 50% with strong compensating factors (large down payment, excellent credit, significant reserves). Some portfolio lenders and non-QM lenders go higher, but rates will be less favorable.

Related finance calculators

These tools pair naturally with your DTI planning.

Debt Snowball Calculator Plan which debts to pay off first to reduce your DTI as quickly as possible before applying for a loan. Mortgage Payoff Calculator Model your future mortgage payment and see how it affects your overall DTI before you apply. Blended Interest Rate Calculator Understand the combined cost of all your current debts as a single weighted rate. HELOC Payment Calculator Estimate how a home equity line payment would affect your back-end DTI ratio.

Disclaimer

This debt-to-income calculator is for educational and planning purposes only. DTI thresholds and qualification criteria vary by lender, loan type, credit score, down payment, and other factors. This tool does not constitute financial or lending advice. Consult a licensed mortgage broker or financial advisor for guidance specific to your situation.