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Debt-to-Income Ratio Calculator

Lenders compare your monthly debts to your gross monthly income. Enter your income and payments to see both ratios and how much room you have.
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Back-end DTI

38.7%

Front-end (housing only): 29.3%

  • AssessmentAbove 36% but within the 43% many lenders allowStretch
  • Gross monthly income$7,500
  • Total monthly debts$2,900
  • Room before 36% back-endAdditional monthly debt$0
  • Room before 43% back-end$325
  • Room before 50% back-endSome programs allow this with strong compensating factors$850

Guidelines, not approvals. Lenders also weigh credit score, savings, loan type and employment. Use your proposed total housing payment (principal, interest, taxes, insurance, HOA) when you are shopping for a home.

Back-end DTI

38.7%

Details

Front-end and back-end ratios

The front-end ratio is your housing payment divided by gross monthly income. The back-end ratio adds your other recurring debts: car loans, student loans, credit card minimums and similar. Lenders use both to judge whether a payment is manageable.

A traditional guideline is 28% for housing and 36% for total debt. FHA loans commonly allow up to 31% and 43%, and some programs allow higher ratios when other factors are strong, such as a large down payment or substantial savings.

What counts as debt

Recurring payments that show on your credit report, such as installment loans, student loans and the minimum on credit cards, plus child support or alimony. Everyday expenses like utilities, groceries and insurance premiums outside the mortgage are not included, even though they strain a budget.

How to improve your ratio

Pay down or pay off debts with high monthly payments relative to their balance, avoid new loans before applying, add a co-borrower's income, or choose a lower price or larger down payment so the housing payment is smaller.

Frequently asked questions

What DTI do I need to qualify?

It depends on the loan program, credit score and the lender. 36% is a common conventional target and 43% a common ceiling, but approvals above and below exist. A lender can tell you what applies to you.

Is DTI based on gross or net income?

Gross, meaning before taxes and deductions. That is why a DTI that looks comfortable on paper can still feel tight in your actual budget.

Does rent count in DTI?

When you apply for a mortgage, your new housing payment replaces your rent in the calculation. Use the new payment in the housing field to see the ratio a lender will use.

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Estimates for education and planning only. TotalMonthly is not a lender or advisor; confirm figures with a licensed professional. See the methodology and disclaimer.