Debt-to-Income Ratio Calculator
Calculate your front-end and back-end debt-to-income (DTI) ratio — the number lenders use to decide how much you can borrow.
How it works
Front-end DTI = housing payment ÷ gross monthly income × 100 · Back-end DTI = (all monthly debt payments) ÷ gross monthly income × 100
Debt-to-income ratio compares the debt payments you owe each month to your gross (pre-tax) monthly income. Lenders read two versions: the front-end ratio counts only housing, and the back-end ratio counts every recurring debt — housing, auto, student and minimum credit-card payments. Most mortgage programs want the back-end ratio at or below 43%, and many prefer 36%, because a lower ratio means more income cushion to absorb the new loan.
Worked example
On $6,000 of gross monthly income with a $1,500 housing payment and $600 of other debt, front-end DTI = 1,500 ÷ 6,000 = 25%, and back-end DTI = 2,100 ÷ 6,000 = 35% — comfortably inside the 36% guideline.
Frequently asked questions
Should I use gross or net income?
Lenders use gross income — your pay before taxes and deductions. Using net (take-home) income would overstate the ratio and give a number lenders will not recognize.
What counts as debt in DTI?
Recurring obligations: your rent or mortgage (with taxes and insurance), auto loans, student loans, minimum credit-card payments, personal loans and court-ordered payments like alimony. Utilities, groceries, insurance premiums and subscriptions are living expenses, not debt.
What DTI do I need for a mortgage?
The qualified-mortgage rule generally caps back-end DTI at 43%, though some programs allow more with compensating factors. A ratio of 36% or below with a strong credit score gives you the widest choice of lenders and rates.
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Educational estimate, not financial advice. Actual loan terms, fees and interest depend on your lender and credit profile.