Debt-to-Income Ratio Calculator
Lenders use debt-to-income (DTI) ratio as one of the biggest factors in loan approval. Enter your monthly debts and gross income to see where you stand against common mortgage and lending thresholds.
*Estimates only. Individual lender guidelines vary. Not financial advice.
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Mortgage Loan Calculator📊 Why Lenders Care About DTI
DTI is one of the single biggest numbers underwriters look at when deciding whether to approve a loan.
How it Works
Adds up all your fixed monthly debt payments and divides by your gross (pre-tax) monthly income to show what percentage of your income is already committed to debt.
The Formula
DTI (%) = Total Monthly Debt Payments ÷ Gross Monthly Income × 100.
Pro Tip
Before applying for a mortgage, pay down or pay off one or two smaller debts (like a car loan or credit card) rather than spreading extra payments thin — it can meaningfully move your DTI in a few months.
Frequently Asked Questions
What is a good debt-to-income ratio? +
A DTI of 36% or below is generally considered healthy by most lenders. A DTI up to 43% is often the maximum allowed for a qualified mortgage under federal guidelines, though some loan programs allow higher with compensating factors. Above 43-50%, approval becomes difficult with most conventional lenders.
How is debt-to-income ratio calculated? +
DTI = Total Monthly Debt Payments ÷ Gross Monthly Income × 100. Total monthly debt includes rent or mortgage, car loans, student loans, minimum credit card payments, and any other recurring debt obligations — but not everyday expenses like groceries or utilities.
Does DTI include utilities, groceries, or insurance? +
No. DTI only counts fixed debt obligations — mortgage/rent, auto loans, student loans, credit card minimums, personal loans, and similar. Variable living expenses like groceries, utilities, gas, and subscriptions are not included, even though they affect your real monthly cash flow.
What's the difference between front-end and back-end DTI? +
Front-end DTI only counts housing costs (mortgage/rent, property tax, insurance) divided by income, and lenders often cap it around 28%. Back-end DTI, which this calculator computes, includes all monthly debts — housing plus car loans, student loans, credit cards, etc. — and is the figure most commonly cited for mortgage qualification.
How can I lower my debt-to-income ratio? +
You can lower DTI by paying down or paying off existing debts (especially high-payment ones like car loans or credit cards), avoiding new debt before a major loan application, refinancing to a lower monthly payment, or increasing your gross income through a raise, side income, or a co-borrower.