Debt-to-Income Ratio Calculator
Add up your monthly debt payments and enter your gross monthly income to find your debt-to-income (DTI) ratio, the number lenders use to decide how much you can borrow.
How to calculate debt-to-income ratio
DTI = total monthly debt payments ÷ gross monthly income × 100
Count minimum required payments on loans and credit cards, plus rent or your mortgage payment. Do not count everyday bills such as groceries, utilities, phone or insurance (other than homeowners insurance included in a mortgage payment).
Worked example
Gross income $6,000 a month. Rent $1,600, car $350, student loan $200 and credit cards $100 add up to $2,250. DTI = 2,250 ÷ 6,000 = 37.5%. The front-end (housing) ratio is 1,600 ÷ 6,000 = 26.7%.
What DTI do lenders allow?
| DTI | What it usually means |
|---|---|
| 36% or less | Comfortable for most lenders |
| 37–43% | Acceptable for many conventional and FHA loans |
| 44–50% | Possible with strong credit or certain programs |
| Over 50% | Hard to get approved for most mortgages |
Many lenders also like the front-end ratio, which counts housing costs only, to be around 28% or less. Limits change between loan programs and lenders.
How to lower your DTI
- Pay down credit cards and small loans to remove whole monthly payments.
- Avoid new car loans or credit before applying for a mortgage.
- Increase income, or add a co-borrower whose income counts.
- Refinance a loan to a longer term to reduce its monthly payment.
This calculator gives an estimate. Lenders calculate DTI from your credit report and documented income and may treat some debts differently.
Frequently asked questions
What is a good debt-to-income ratio?
Below 36% is generally considered good. Many mortgage lenders accept up to 43%, and some programs go higher.
Is DTI based on gross or net income?
Gross income, which is your pay before taxes and deductions.
Do utilities count in DTI?
No. Utilities, groceries, phone bills and car insurance are not debts, so they are left out.
What is front-end vs back-end DTI?
Front-end DTI counts only housing costs. Back-end DTI, the number usually meant by "DTI", counts all monthly debt payments.
Does DTI affect my credit score?
No. DTI is not part of your credit score, though high credit card balances can affect both.
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