Debt-to-Income (DTI) Ratio Calculator
Calculate your front-end (housing) and back-end (total) debt-to-income ratios and see whether you meet common mortgage qualification limits.
How to use this tool
- Enter your total monthly housing payment (mortgage/rent plus taxes and insurance).
- Add up your other monthly debt payments and enter the total.
- Enter your gross (pre-tax) monthly income.
- Read your back-end and front-end DTI percentages.
- Check the qualification status against the 36% / 43% thresholds.
Lenders use your debt-to-income ratio to decide how much you can borrow. This tool computes both the front-end (housing) and back-end (total) DTI and flags whether you meet common qualification limits.
Formula
DTI compares monthly debt payments to gross monthly income:
Front-end DTI = (Housing payment ÷ Gross income) × 100
Back-end DTI = ((Housing + Other debt) ÷ Gross income) × 100
The back-end ratio is the one most lenders lead with. Common limits: ≤36% is strong, ≤43% meets the Qualified Mortgage standard, and above 43% is considered high.
How it works
Debt-to-income ratio is the single most important number in mortgage underwriting after credit score. It measures how much of your gross monthly income is already committed to debt, signalling how much room you have for a new payment.
Lenders look at two versions. The front-end ratio counts only housing costs; the back-end ratio counts all recurring debt including the mortgage. The back-end ratio drives most decisions: 36% or below is comfortable, up to 43% generally meets the Qualified Mortgage rule, and some programs stretch to 50% with compensating factors like large reserves or a high credit score.
Include every recurring debt obligation — mortgage or rent, auto, student, and personal loans, plus credit-card minimums. Exclude living costs that aren't debt, such as utilities, groceries, and insurance premiums that aren't escrowed. Lowering DTI by paying down balances or raising income improves both your odds and your rate.
Worked example
$1,400 housing, $600 other debt, $7,000 income
- Front-end DTI = $1,400 ÷ $7,000 × 100 = 20.00%.
- Total monthly debt = $1,400 + $600 = $2,000.
- Back-end DTI = $2,000 ÷ $7,000 × 100 = 28.57%.
- 28.57% is at or below 36%, so the qualification status is Excellent.
Back-end DTI 28.57% | Front-end DTI 20.00% | Excellent (<=36%)
Maximum total monthly debt at common DTI limits, by income
| Gross monthly income | At 28% | At 36% | At 43% |
|---|---|---|---|
| $4,000 | $1,120 | $1,440 | $1,720 |
| $5,000 | $1,400 | $1,800 | $2,150 |
| $6,000 | $1,680 | $2,160 | $2,580 |
| $8,000 | $2,240 | $2,880 | $3,440 |
| $10,000 | $2,800 | $3,600 | $4,300 |
Key terms
- Debt-to-income ratio (DTI)
- The share of gross monthly income that goes toward recurring debt payments, expressed as a percentage.
- Front-end DTI
- DTI counting only housing costs (mortgage or rent plus taxes, insurance, and HOA). Often capped near 28%.
- Back-end DTI
- DTI counting all recurring debt including housing. The primary underwriting metric, commonly capped at 36–43%.
- Qualified Mortgage (QM)
- A loan meeting federal consumer-protection standards; the rule generally requires a back-end DTI at or below 43%.
Frequently asked questions
- What is a good debt-to-income ratio?
- A back-end DTI of 36% or below is considered strong. Up to 43% generally meets the Qualified Mortgage standard. Above 43% is high and may limit your loan options or require compensating factors.
- What debts are included in DTI?
- Include all recurring debt: mortgage or rent, auto loans, student loans, personal loans, and credit-card minimum payments. Exclude utilities, groceries, insurance you don't escrow, and other discretionary spending.
- Should I use gross or net income?
- DTI uses gross (pre-tax) monthly income — the figure lenders underwrite to. Using net income would overstate your ratio relative to lender guidelines.