Finance
DTI Calculator
Your debt-to-income ratio is monthly debt ÷ gross monthly income. Front-end counts housing only; back-end counts every debt. Enter your income and debts to see both ratios, whether you clear the 28/36 rule and the 43% mortgage limit, and the debt room you have left.
Your income & debts
Total pay before tax, per month
$
Rent, or mortgage with tax and insurance (PITI)
$
Other monthly debt payments
$
$
$
$
Leave out utilities, groceries, insurance and taxes — DTI counts debt payments only.
Back-end DTI
43.3%
Stretched · front-end 30.0%
0%36% rule43% limit100%
Past the usual 43% limit. Approval is harder and often needs compensating factors like a large down payment or strong credit.
Front-end DTI
30.0%
Total monthly debt
$2,600
Debt allowed at 43%
$2,580
Room before 43%
-$20
How much room is left
You are about $20 a month over the 43% limit. Cutting that much debt would bring you back under it.
Estimate only. Lenders count debts differently and may include or exclude some payments. Use gross (pre-tax) income, which is what underwriters use.
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The basics
What a debt-to-income ratio measures
DTI is one of the first things a lender checks. It is simple division, but it comes in two flavours that answer different questions.
front-end = housing ÷ income
The housing ratio
The share of income that goes to housing alone — rent, or a mortgage with tax and insurance. The 28 in the 28/36 rule is the ceiling most lenders like here.
$1,800 ÷ $6,000 = 30.0%
back-end = all debt ÷ income
The total-debt ratio
The share of income that goes to every debt payment. This is the number underwriters weigh most, and the 36 — with 43% as the outer mortgage limit.
$2,600 ÷ $6,000 = 43.3%
Method
How to calculate DTI by hand
Four steps take you from your paycheck and bills to both ratios and the room you have left.
- 1
Add up every monthly debt payment
Total your recurring debt: housing plus car loans, credit card minimums, student and personal loans. Leave out utilities, groceries and insurance — those are not debt.
housing $1,800 + other $800 = $2,600 a month - 2
Divide housing by income for the front-end ratio
The front-end ratio is the housing payment H over gross monthly income I. Lenders like this under 28%.
$1,800 ÷ $6,000 = 30.0% - 3
Divide all debt by income for the back-end ratio
The back-end ratio is total debt D over income I — the number lenders weigh most. Aim under 36%, and stay under 43%.
$2,600 ÷ $6,000 = 43.3% - 4
Compare to the limits
The debt allowed at 43% is income times 0.43. Subtract what you already owe to see the room you have left before the qualified-mortgage line.
$2,580 allowed − $2,600 used = -$20
Worked examples
The same income, more or less debt
$6,000 of gross monthly income with an $1,800 housing payment. Non-housing debt is what pushes the back-end ratio toward the limit.
| Other monthly debt | Front-end | Back-end | Verdict |
|---|---|---|---|
| $0 | 30.0% | 30.0% | Comfortable |
| $400 | 30.0% | 36.7% | Acceptable |
| $800 | 30.0% | 43.3% | Stretched |
| $1,200 | 30.0% | 50.0% | Stretched |
Housing stays fixed at $1,800, so the front-end ratio never moves — only the back-end ratio climbs as other debt grows.
Where it shows up
When DTI decides things
Three moments where your ratio is the number that opens or closes a door.
mortgage approval
Buying a home
The back-end ratio is a gate on every mortgage. Knowing it before you apply tells you what price you can realistically shop.
Under 43% is the line most lenders draw
better pricing
The rate you are offered
Two borrowers with the same credit can get different rates if their ratios differ. A lower DTI signals less risk.
A lower DTI can earn a lower rate
borrowing headroom
Any new loan
Every lender wants to know a new payment fits your income. The room-left figure shows how much more debt you can carry.
Auto, personal and student lenders check it too
Reference
The DTI bands lenders use
General guidance, not a specific lender’s policy. The back-end ratio is what these bands describe.
| Back-end DTI | Standing | What it means |
|---|---|---|
| 0% – 36% | Comfortable | The 28/36 sweet spot. Conventional loans approve easily and you keep breathing room. |
| 37% – 43% | Acceptable | Within the qualified-mortgage limit. Approval is likely but the cushion is thinner. |
| 44% – 50% | Stretched | Above the standard limit. Possible with compensating factors, but harder and pricier. |
| Over 50% | Too high | New credit is rarely approved. Focus on paying debt down before applying. |
Worth knowing
Things that move your ratio
None of these are in the headline number, and each can change whether you clear the limit.
gross, not net
Use pre-tax income
Underwriters use gross income, so the calculator does too. Measuring against take-home pay overstates your ratio.
paid-off debt drops out
Clearing a loan helps twice
Paying off a car or card removes its payment from the ratio and can lift your credit score, so it helps on two fronts at once.
new debt counts fast
Avoid new loans before applying
A new car loan or card the month before a mortgage application can push you over the limit. Lenders re-check right before closing.
FHA runs higher
The program sets the ceiling
Conventional loans lean on 43%; FHA can reach 50% with compensating factors. The cutoff is a program rule, not a law.
co-borrower income
Adding a borrower
A co-borrower’s income raises the bottom of the ratio — but their debts join the top, so it only helps if they bring more income than debt.
not the whole story
DTI is one factor
Credit score, down payment and cash reserves matter too. A strong file can offset a higher DTI, and a weak one can sink a low ratio.
Quick chart
Debt you can carry, by income and DTI
Pick a target ratio and read the most total monthly debt you can hold at each income level — the reverse of the calculator, handy for setting a budget before you shop.
Target back-end DTI
The most total monthly debt (housing + everything else) you can carry at 43% DTI, by income.
| Gross monthly income | Max total debt / mo | At 28% (housing) |
|---|---|---|
| $3,000 | $1,290 | $840 |
| $4,000 | $1,720 | $1,120 |
| $5,000 | $2,150 | $1,400 |
| $6,000 | $2,580 | $1,680 |
| $8,000 | $3,440 | $2,240 |
| $10,000 | $4,300 | $2,800 |
Max total debt = income × 0.43. The last column is the 28% front-end housing guideline.
How we calculate this
The formula and our assumptions
Both ratios are simple division against gross income. We show the working so you can check it.
front-end = H ÷ I
The housing ratio
H is the monthly housing payment and I gross monthly income. Expressed as a percent.
back-end = (H + other) ÷ I
The total-debt ratio
Every recurring debt payment over gross monthly income. The debt allowed at a target ratio is simply I times that ratio.
- Income is gross (pre-tax) monthly income, matching lender practice.
- Only recurring debt payments count; living expenses and taxes are excluded.
- The 28% front-end and 36%/43% back-end lines are common guidelines, not fixed law.
- Individual lenders and loan programs set their own exact cutoffs.
What to do next
Routes when your ratio matters
Rows are ordered by borrower fit, not by any payout — the step that suits your situation comes first for you. Program limits are described as ranges only; a lender confirms your exact case.
| Route | Example | Best for | Notes |
|---|---|---|---|
| Lower your DTI first | Pay off a card or car loan | Anyone above ~43% | Removing a monthly payment is the fastest way under the limit and usually earns a better rate too. |
| Conventional mortgage | Fannie Mae / Freddie Mac loans | Back-end DTI at or under 43% | The standard route. Best pricing for borrowers comfortably under the limit with solid credit. |
| FHA loan | Government-backed mortgage | Higher DTI, smaller down payment | Allows a higher DTI — often to 50% — with compensating factors, at the cost of mortgage insurance. |
| Debt consolidation | One fixed loan for several debts | Many small high-rate debts | Can lower the total monthly payment and simplify the picture, which nudges the back-end ratio down. |
CalculateThis.io is not a lender and does not make credit decisions. When we add partner links they will be marked as sponsored, and we may earn a commission if you apply through one — it does not change the rate you are offered.
Sources
Where the method comes from
- Consumer Financial Protection Bureau — how debt-to-income ratio is defined and used.
- The Ability-to-Repay / Qualified Mortgage rule — the 43% back-end DTI benchmark.
- The 28/36 rule — the long-standing front-end and back-end lending guideline.
FAQ
Common questions
Your debt-to-income ratio, or DTI, is the share of your gross monthly income that goes to debt payments. It comes in two forms: the front-end ratio is housing ÷ income, and the back-end ratio is all debt ÷ income. On $6,000 of monthly income with a $1,800 housing payment and $800 of other debt, the back-end DTI is $2,600 ÷ $6,000 = 43.3%.
Lenders like the "28/36 rule": housing under 28% of gross income and total debt under 36%. Under 36% is comfortable. Between 37% and 43% is still acceptable — 43% is the limit most lenders use for a qualified mortgage. Above 43% approval gets harder, and above 50% new credit is rarely approved. A lower DTI also tends to earn a better rate.
Front-end DTI counts only your housing payment against income; back-end DTI counts every debt — housing plus car loans, credit card minimums, student loans and the rest. Lenders weigh the back-end ratio most, because it shows the whole picture. On the example above the front-end is 30.0% and the back-end is 43.3%.
Recurring debt payments count: rent or mortgage (with tax and insurance), car loans, minimum credit card payments, student and personal loans, and obligations like child support or alimony. Everyday costs do not count — utilities, groceries, phone bills, insurance premiums and taxes are left out. DTI measures debt, not your whole budget.
Two levers move DTI: less debt, or more income. Paying off a card or a car loan removes that payment from the top of the ratio; a raise or a side income grows the bottom. On the example, cutting the $800 of non-housing debt to zero would drop the back-end DTI from 43.3% to 30.0%. Avoid taking on new loans right before applying for a mortgage.
Most conventional lenders want a back-end DTI at or under 43%, and prefer 36% or less. FHA loans can go higher — often to 50% with strong compensating factors like a big down payment, cash reserves or a high credit score. The exact cutoff depends on the loan program and the lender, so treat 43% as the line to aim under.
Gross income — your pay before tax and deductions. That is what mortgage underwriters use, so the calculator does too. Using take-home pay would make your DTI look higher than the lender's figure and could scare you off a loan you actually qualify for.
No. DTI compares monthly debt payments to monthly income. Credit utilization compares your card balances to your card limits and feeds your credit score. You can have a low DTI but high utilization, or the reverse. Lenders look at both, but they measure different things.
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Ugo CharlesBuilt and fact-checked against our editorial standards · Last updated June 2026
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