How to use the Debt-to-Income calculator
- Enter your numbers. Fill in gross monthly income.
- Enter monthly debt payments details. Fill in rent or mortgage payment, car loans, student loans, credit card minimums, other loans / support.
- Read your results. Results update instantly. The headline shows the debt-to-income ratio (back-end); the breakdown and table below show the details.
How DTI is calculated
Debt-to-income compares your monthly debt payments with your gross (pre-tax) monthly income.
Back-end DTI = (housing + all other debt payments) ÷ gross monthly income
Housing includes principal, interest, property tax, homeowners insurance, mortgage insurance and HOA dues (or your rent if you’re not buying). Other debts include car, student and personal loans, minimum card payments, and child support or alimony. Everyday bills like utilities and groceries aren’t counted.
What lenders look for
The classic guideline is 28% front-end and 36% back-end. A 43% back-end limit was long the benchmark for qualified mortgages; Fannie Mae’s automated underwriting allows up to 50% with strong compensating factors. FHA and VA have their own rules (VA also looks at residual income).
Worked example
With these inputs: gross monthly income (before tax) $7,500; rent or mortgage payment (incl. tax, insurance, HOA) $2,100; car loans $450; student loans $250; credit card minimums $120.
The calculator gives a debt-to-income ratio (back-end) of 38.9% (above 36%, within the 43% QM benchmark). Other results: front-end (housing) ratio 28.0%, total monthly debts $2,920, max housing at 28% $2,100, max total debts at 36% / 43% $2,700 / $3,225.
What your results mean
Back-end DTI is the number most lenders focus on. Under 36% is strong; 43–50% may still qualify but with less room for error. Front-end DTI shows how much of your income goes to housing alone.
Tips
- Use gross monthly income, before taxes and deductions.
- Include the new mortgage payment when testing a home purchase.
- Paying off a loan with few payments left can remove it from your DTI entirely.
Frequently asked questions
What DTI do I need for a mortgage?
Many conventional loans allow up to 45–50% with automated approval; 36% or less gets the most options.
Is rent included in debt-to-income?
For a mortgage application, your new housing payment replaces rent. For general budgeting, include rent as housing.
What is a good debt-to-income ratio?
Below 36% is generally considered healthy; below 28% for housing alone. Lower ratios get better loan terms.
Does DTI affect my credit score?
No. Credit scores don’t use income. But lenders weigh DTI heavily when approving loans.
How can I lower my DTI quickly?
Pay off a small loan entirely (removing its payment), pay down cards to cut minimums, or add a co-borrower’s income.
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