Debt-to-Income (DTI) Ratio Calculator
Enter your income and monthly debt payments. See your DTI the way a mortgage underwriter computes it, and how much room you have before hitting approval limits.
| Front-end DTI (housing only) | — |
| Rating | — |
| Room before 36% guideline | — |
| Room before 43% mortgage cap | — |
How DTI is calculated
Back-end DTI = All monthly debt payments ÷ Gross monthly income × 100
Lenders count housing (rent or full mortgage PITI), loan payments, and credit card minimums — not utilities, groceries, insurance, or subscriptions. Front-end DTI counts housing only.
The thresholds that matter
| Back-end DTI | What it means |
|---|---|
| Under 28% | Excellent; qualifies broadly at best rates |
| 28–36% | The classic "safe" guideline (28/36 rule) |
| 36–43% | Approvable for mortgages, but tighter; 43% is the general qualified-mortgage ceiling |
| 43–50% | Some programs (FHA) stretch here with strong compensating factors |
| 50%+ | Few options; focus on the debt payoff plan first |
Two ways to improve DTI fast
DTI has only two levers. Raise documented income — a raise, or 2 years of side-income history. Or eliminate payments: paying a $450/month car loan down to zero cuts a 33% DTI to 26% instantly — often worth more for mortgage approval than a bigger down payment. Note that paying down a card barely helps (the minimum shrinks a little); closing out an installment loan removes its entire payment.
Frequently asked questions
What is a good debt-to-income ratio?
Under 36% is the classic guideline; under 28% is excellent. Mortgage lenders generally cap back-end DTI at 43% for qualified mortgages, with some programs stretching to 50% with strong credit.
What counts as debt in DTI?
Housing (rent or full mortgage payment), car loans, student loans, personal loans, card minimum payments, alimony/child support. Not counted: utilities, insurance, groceries, phone plans, subscriptions.
Is DTI based on gross or net income?
Gross (pre-tax) income. That surprises people — a 36% DTI on gross can feel like half of actual take-home pay.
How do I lower my DTI quickly?
Pay an installment loan to zero (its whole payment disappears from the ratio) or document more income. Paying down card balances helps less because only the minimum payment counts.
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Last updated: 2026-07-08