Debt-to-Income Ratio Calculator
Work out your front-end and back-end DTI the way a mortgage lender does, and see where you stand against common lending limits.
Back-end DTI
35.9%
- Front-end DTI
- 25.3%
- Total monthly debts
- $2,690
- Rating
- Comfortable
- Room to 36%
- $10/mo
Within the classic 36% guideline most lenders like to see.
Where you sit
Explain my numbers
Get a plain-English reading of the result above: what drives it, what the trade-offs are and what to ask a lender or adviser. It is educational, not financial advice. Only these inputs and results are sent, and nothing is stored.
The formula
DTI = Total monthly debt payments ÷ Gross monthly income × 100
Lenders use gross income, before taxes and payroll deductions. If you are self-employed they typically use net business income from your last two tax returns. For the mortgage you are applying for, use the proposed payment (principal, interest, taxes, insurance and HOA) as the housing figure; the mortgage calculator gives you that number.
Frequently asked questions
How do you calculate debt-to-income ratio?
Add up your monthly debt payments (housing, car, student loans, minimum credit card payments, other loans, child support) and divide by your gross monthly income, then multiply by 100. $2,690 of debts on $7,500 income is a 35.9% DTI.
What is a good debt-to-income ratio?
Lenders generally prefer 36% or lower, with no more than 28% going to housing. 43% was long the limit for Qualified Mortgages, and some loan programs go up to about 50% with compensating factors.
What is the difference between front-end and back-end DTI?
Front-end DTI counts only housing costs (mortgage or rent with taxes, insurance and HOA). Back-end DTI counts all monthly debts, including housing. Mortgage lenders look at both.
Do utilities and groceries count in DTI?
No. DTI only includes debt obligations reported on your credit or court-ordered payments. Utilities, phone, insurance premiums and groceries are left out.
How can I lower my DTI quickly?
Pay off a small loan entirely to remove its payment, pay card balances down to reduce minimums, or add documented income such as a co-borrower. Avoid new credit before applying for a mortgage.