Debt-to-Income Ratio Calculator
Find your debt-to-income ratio (DTI), the share of your gross monthly income that goes to debt payments. Itemize your housing and other debts, switch income between monthly and yearly, and see both your front-end (housing) and back-end (total) ratios, which loan programs you qualify for, and how much more debt you could take on.
Formula
Worked example
$1,500 of total monthly debt (with $1,200 housing) on $5,000 gross monthly income gives a 30% back-end and 24% front-end DTI, both comfortably in the healthy range. At 36% the borrower could carry up to $1,800 in payments, so there is about $300 of monthly room.
What debt-to-income ratio measures
Your debt-to-income ratio is the percentage of your gross monthly income that goes toward required debt payments. It is one of the main numbers lenders use to decide whether to approve a loan and on what terms, because it shows how much room you have in your budget to take on more. A lower DTI signals less risk and usually wins you a better rate.
Front-end versus back-end DTI
There are two versions, and this calculator reports both. Front-end DTI counts only housing costs (rent or mortgage plus property tax, homeowner insurance and HOA dues) against income; lenders typically want it at or below 28%. Back-end DTI, the figure quoted most often, counts every recurring debt payment, including housing, car loans, student loans, credit card minimums and other obligations. Mortgage underwriters weigh the back-end figure most heavily, usually looking for 36% or less on conventional loans.
Loan-program limits and your borrowing room
Different loan programs allow different ceilings. Conventional loans generally use a 28/36 guideline, FHA loans often allow 31/43, VA loans look at a single 41% back-end figure, and the qualified-mortgage rule caps most loans near 43% (some lenders stretch to 50% with strong compensating factors). The calculator shows how much additional monthly payment you could add before crossing the 36% and 43% lines, which is a quick way to see how a new car loan or a larger mortgage would affect your eligibility.
What counts and what does not
Include required monthly payments: housing, auto loans, student loans, personal loans, credit card minimums and any child support or alimony. Do not include everyday expenses like groceries, utilities, fuel or streaming subscriptions, because those are not debt. Always use gross income (before tax) so your figure matches how lenders calculate it. If your income is irregular, average several months to get a realistic monthly number.
DTI bands and loan-program limits
| DTI / program | Front-end | Back-end | What it means |
|---|---|---|---|
| Healthy | up to 28% | up to 36% | Most lenders approve with good terms |
| Conventional limit | 28% | 36% | Standard guideline for conforming loans |
| FHA limit | 31% | 43% | More flexible, allows higher ratios |
| VA / qualified mortgage | n/a | 41-43% | VA uses 41%; QM rule caps near 43% |
| Stretched | n/a | 43-50% | Possible with strong credit and reserves |
| High | n/a | 50%+ | Generally too high; pay down debt first |
Front-end is housing only; back-end is all debt. Limits vary by lender and compensating factors.
Frequently asked questions
What is the difference between front-end and back-end DTI?
Front-end DTI counts only your housing payment (rent or mortgage plus tax, insurance and HOA) against gross income, and lenders usually want it at or below 28%. Back-end DTI counts all of your debt payments and is the figure most lenders rely on, with 36% or less considered healthy and roughly 43% the common ceiling.
What is a good debt-to-income ratio?
Generally, a back-end ratio of 36% or below is considered healthy. Many mortgage lenders will still approve borrowers up to about 43%, and some programs such as FHA go higher, but a lower ratio improves your terms and leaves more breathing room.
How much more debt can I take on?
Multiply your gross monthly income by the target ratio (for example 0.36) and subtract your current total debt payments. The result is how much additional monthly payment you could add before reaching that cap. This calculator shows that room for both the 36% and 43% lines automatically.
Does DTI affect my credit score?
Not directly. DTI is not part of your credit score because scores do not know your income. But lenders check DTI separately during applications, so a high ratio can still lead to a declined loan even with a good score.
How can I lower my DTI?
Pay down existing balances (especially small ones you can clear entirely), avoid taking on new debt, and increase your income. Refinancing to a lower payment can also help the ratio, as can paying off a car loan that is near its end.