Debt-to-Income Ratio Calculator
Work out the front-end and back-end DTI that lenders use, and see how much room you have left to borrow.
Your details
Before tax — lenders use gross, not take-home
Monthly debts
Mortgage or rent, plus property tax, insurance, and HOA
This calculator runs entirely on your device. Nothing you enter is uploaded, stored, or sold. How this works
Back-end DTI
40.1%
Acceptable — $3,410 of debt against $8,500 of gross income
Includes your inputs, the full breakdown, and every row of the table.
Front-end DTI
28.2%
Housing only — lenders like 28% or less
Back-end DTI
40.1%
All debt — 36% or less is ideal
Room to 36%
None
Room to 43%
$245/mo
- Gross monthly income
- $8,500
- Housing payment
- $2,400
- Car payments
- $480
- Student loans
- $320
- Credit card minimums
- $210
- Other debts
- $0
- Total monthly debt
- $3,410
- Front-end ratio (housing ÷ income)
- 28.2%
- Back-end ratio (all debt ÷ income)
- 40.1%
- Housing room to a 28% front-end
- Over the guideline
| Threshold | Max total debt | Room left |
|---|---|---|
| 28% (front-end) | $2,380 | Over |
| 36% (ideal) | $3,060 | Over |
| 43% (qualified mortgage) | $3,655 | $245 |
| 50% (hard ceiling) | $4,250 | $840 |
What this means
- Up to 43% is the usual ceiling for a qualified mortgage.
- Lenders use gross income, before tax and deductions. Your ratio against take-home pay is meaningfully worse, which is why a loan you technically qualify for can still feel unaffordable.
- Only debts that appear on your credit report count. Utilities, groceries, insurance premiums, and childcare are excluded from DTI even though they consume real income.
How the debt-to-income ratio calculation works
Debt-to-income ratio is the first number a mortgage underwriter looks at, and it comes in two versions. The front-end ratio counts only housing costs against gross income; the back-end ratio counts every debt payment on your credit report. The traditional guideline is 28% front-end and 36% back-end.
The practical ceiling is 43%, which is the threshold for a qualified mortgage under federal rules. Some programmes stretch to 50% with compensating factors like a large down payment or substantial reserves, but options narrow quickly above 43%.
The critical detail is that DTI is calculated on gross income. A household at 43% DTI is spending well over half its actual take-home pay on debt once taxes and retirement contributions come out. That is why plenty of people qualify for a payment they cannot comfortably live with.
Also note what DTI ignores. Childcare, health insurance premiums, utilities, and groceries do not appear on a credit report and so do not count — which means the ratio systematically understates the burden for families with children.
Frequently asked questions
What DTI do I need for a mortgage?
43% is the usual maximum for a qualified mortgage; 36% or below is comfortable. FHA loans sometimes allow above 50% with strong compensating factors.
Does rent count toward DTI?
Your current rent is not counted when qualifying for a mortgage, because the new housing payment replaces it. It does count for most other loan applications.
How do I lower my DTI quickly?
Pay off the smallest balances with the largest minimum payments — DTI measures monthly payments, not balances. Clearing a $2,000 car loan with a $480 payment helps far more than paying $2,000 against a mortgage.
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Disclaimer. This calculator is provided for general information and educational purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Results are estimates based on the inputs you provide and the assumptions described above. Confirm any figure with a qualified professional before acting on it.