Skip to content
CalculatorDash
Menu

Debt-to-Income Ratio Calculator (DTI)

Updated · Written and checked by · How we check our maths

Quick answer

DTI = monthly debt payments ÷ gross monthly income × 100. With $6,500 a month of income, a $1,800 housing payment and $650 of other debts, your back-end DTI is about 37.7% and your front-end (housing) DTI is 27.7%. Many mortgage lenders prefer 36% or less and rarely go above 43–50%.

Debt-to-income ratio

$
$
$
$
$
$

Back-end DTI (all debts)

37.7%

Front-end DTI (housing only)
27.7%
Total monthly debt payments
$2,450
Room before 36%
-$110

Negative means you are above 36%.

How this calculator works

Your debt-to-income ratio tells lenders how much of your income is already promised to debt payments. The back-end ratio counts every monthly debt payment including housing; the front-end ratio counts housing alone. Both use gross (pre-tax) income.

For mortgages, many lenders like to see a front-end ratio under about 28% and a back-end ratio under about 36%, though government-backed and some conventional loans allow 43–50% with strong credit or savings. Car and personal lenders use similar checks.

Lowering DTI is usually quicker by paying off a small loan entirely than by raising income: clearing a $400 car payment cuts DTI more than a raise of the same amount, because only the debt side changes.

The formula

Back-end DTI
(housing + all other monthly debt payments) ÷ gross monthly income × 100
Front-end DTI
housing payment ÷ gross monthly income × 100

Worked example

$1,800 housing + $400 car + $150 cards + $100 student loans = $2,450 a month. Divided by $6,500 income, that's a 37.7% back-end DTI and a 27.7% front-end DTI. You would need to cut debts by $110 a month to reach 36%.

Tips

  1. 01Don't count everyday bills like groceries, utilities or phone; lenders don't.
  2. 02Pay off a small loan completely before applying for a mortgage.
  3. 03Avoid opening new credit in the months before a big loan application.

Frequently asked questions

What is a good debt-to-income ratio?

Under 36% is generally considered good; 36–43% is acceptable for many loans; above 50% makes approval difficult.

Is DTI calculated on gross or net income?

On gross income, before taxes and deductions.

What counts as debt in DTI?

Housing, car loans, student loans, minimum card payments, personal loans and court-ordered support. Not utilities, food or insurance premiums.