Debt-to-Income Ratio Calculator
Lenders use your debt-to-income ratio (DTI) to judge whether you can take on a new loan, especially a mortgage. This debt to income ratio calculator divides your monthly debt payments by your gross monthly income, shows your back-end and front-end ratios, and tells you how much more you could pay each month, in total or for housing, while staying at or below 36%.
Updated
Results
- Front-end ratio (housing)Housing payment ÷ gross income
- Status
- Total monthly debt payments
- Room under 36%How much more in monthly payments fits under 36%
- Max housing payment at 36% DTIWith your other debts unchanged
Results are estimates. See the methodology below.
How to use the calculator
- Gross monthly income: your pay before taxes and deductions. For a joint application, add both incomes. If your income varies, use a typical month and lean low.
- Housing payment: your rent, or your mortgage payment including property taxes, homeowners insurance and HOA dues. If you're applying for a mortgage, enter the new payment you expect.
- Car, student loan and credit card payments: the minimum monthly payment on each, not the balance.
- Other debts: personal loans, other installment loans, and court-ordered payments such as child support.
Leave out everyday costs like utilities, groceries, phone and insurance premiums. They matter for your budget, but lenders don't count them as debt.
How DTI is calculated
Back-end DTI = (housing + car + student loans + cards + other debts) ÷ gross monthly income × 100
Front-end ratio = housing payment ÷ gross monthly income × 100
The status compares your back-end DTI with two reference points:
- 36% or less: within the guideline the CFPB gives for homeowners' total debt.
- Above 36% up to 43%: some lenders still approve loans in this range, but your options narrow.
- Above 43%: high. Approval may still be possible, but expect closer scrutiny.
Room under 36% = 36% of your income minus your current debt payments. Max housing payment is the housing payment that would put your total DTI exactly at 36%, keeping your other debts as they are.
Worked examples
| Gross income | Housing | Other debts | Back-end DTI | Front-end | Max housing at 36% |
|---|---|---|---|---|---|
| $6,500 | $1,800 | $820 | 40.3% | 27.7% | $1,520 |
| $5,000 | $1,400 | $100 | 30.0% | 28.0% | $1,700 |
| $4,200 | $1,450 | $1,010 | 58.6% | 34.5% | $502 |
1. Good housing ratio, high total
With $6,500 of income, a $1,800 housing payment is only 27.7% of income. But a $450 car payment, $250 for student loans and $120 on cards bring total debts to $2,620 and the back-end DTI to 40.3%. To get to 36% with the same other debts, housing would need to fall to $1,520.
2. Inside the guideline
$1,500 of debts on $5,000 of income is a DTI of 30.0%. You have $300 a month of room before reaching 36%.
3. Over the limit
$2,460 of debts on $4,200 is 58.6%. Even with no other changes, housing would have to drop to $502 to reach 36%, so paying off the car, student loan or card balances is the faster lever.
What lenders actually look at
There is no single legal DTI limit for every loan. The 43% figure comes from the original Qualified Mortgage rule under the Dodd-Frank Act; in 2021 the CFPB replaced that DTI cap with a price-based test. A St. Louis Fed analysis of more than 30 million mortgage applications from 2018 to 2024 found no visible jump in denial rates at 43%, while denials rose sharply above 50%. Each loan program and lender sets its own limits and weighs credit score, savings and down payment alongside DTI.
Frequently asked questions
What is a good debt-to-income ratio?
The CFPB's guideline for homeowners is a total DTI of 36% or less, with some lenders going up to 43% or higher. For the mortgage payment alone it suggests 28% to 35% of gross income. Lower is better both for approval and for your budget.
Is DTI based on gross or take-home pay?
Gross income, before taxes and other deductions. Because take-home pay is smaller, the share of your paycheck that goes to debt is higher than your DTI suggests.
Do I include rent?
Enter it if you want to see how much of your income goes to rent plus debt. The CFPB's own worksheet leaves rent out of renters' DTI and suggests 15% to 20% or less for their other debts. When you apply for a mortgage, the lender replaces your rent with the new mortgage payment.
Why is my housing ratio fine but my total DTI too high?
The front-end ratio counts only housing, while the back-end DTI adds every other monthly payment. In the first example above, housing is 27.7% of income but the car, student loan and card payments push the total to 40.3%. Lenders look at both, so clearing a small loan can matter as much as a cheaper home.
How can I lower my DTI quickly?
Paying off a debt completely removes its whole monthly payment, which helps more than paying a little extra on several. Our debt payoff calculator shows which order clears your debts fastest. Increasing income, adding a co-borrower or choosing a cheaper home also lowers the ratio.
Sources
This calculator gives an estimate for planning only. Lenders calculate DTI with their own rules on which income and debts count, and the result is not a loan approval or financial advice.