Debt-to-Income Ratio Calculator (DTI)
Before approving a mortgage or loan, lenders check your debt-to-income ratio (DTI) — the share of your monthly income already committed to debt. This tool computes both the front-end (housing only) and back-end (all debts) ratios and tells you which lending band you fall into.
Lenders vary, but 36% or below is comfortable; many mortgages cap total DTI around 43–50%.
How to use this tool
- Enter your gross (pre-tax) monthly income from all sources.
- Add your housing payment, then other loans, card minimums and obligations.
- Press Calculate to see both DTI ratios and your lending band.
- Aim to get the back-end ratio under 36% before applying for a mortgage.
Frequently asked questions
What is a good debt-to-income ratio?
Under 36% is considered healthy. Up to 43% is the common ceiling for qualified mortgages; some programs stretch to 50% with strong compensating factors (big deposit, high credit score). The lower your DTI, the better the rates you'll be offered.
What's the difference between front-end and back-end DTI?
Front-end counts only housing costs against income (lenders often like ≤28%). Back-end counts all monthly debt — housing plus loans and cards (typically ≤36–43%). Lenders look at both, but back-end is the decisive one.
Does rent count in DTI?
For a mortgage application it's replaced by the proposed new mortgage payment. For other loans, your current rent is usually included. Enter whichever housing cost applies to the decision you're modelling.
How can I lower my DTI quickly?
Two levers: reduce monthly debt (pay off or consolidate the smallest/ highest-payment loans, especially cards) or increase documented income. Avoid taking on new debt in the months before a mortgage application — even a new car loan can push you over the line.
Is gross or net income used?
Lenders use gross (pre-tax) income, so this calculator does too. Remember your real take-home is lower, so a technically-approvable DTI can still feel tight in daily life — leave yourself a margin.