Debt-to-Income Ratio Calculator
Your debt-to-income ratio (DTI) is your monthly debt payments divided by your gross monthly income. Lenders use two versions: front-end counts only housing, back-end adds every other required payment such as card minimums, car and student loans. Under 36% back-end is generally considered good, 43% is the usual ceiling for a qualified mortgage, and above 50% most lenders decline.
This calculator gives both numbers, places yours on the band scale, and shows how much monthly payment you would need to cut to reach 36% or 43%. Utilities, groceries, insurance and taxes are not included because lenders do not count them. Only what you actually pay toward debt and housing goes in.
Results
Your back-end debt-to-income ratio
41.7%
Stretched. $2,500 in monthly debt and housing payments on $6,000 gross income. Front-end (housing only): 27.5%.
Your back-end ratio is 41.7%, which lenders would call stretched. Front-end counts only housing; back-end adds every debt payment.
Enable JavaScript to edit the numbers above and see your own plan, charts, and month-by-month schedule.
Frequently asked questions
What is a good debt-to-income ratio?
Under 36% back-end is the common benchmark for comfortable, and under 20% is excellent. Between 36% and 43% lenders get selective and may want compensating factors like a larger down payment. Above 43% most mortgage programs will not qualify you, and above 50% almost no unsecured lender will.
What counts as debt in the ratio?
Required monthly payments: rent or the full mortgage payment including taxes and insurance, minimum card payments, car loans, student loans, personal loans, child support and alimony. Not counted: utilities, phone, groceries, insurance premiums on their own, subscriptions, or the total balances you owe. It is about monthly obligations.
What is the difference between front-end and back-end DTI?
Front-end is housing cost alone divided by gross income; lenders like it under 28%. Back-end adds all other debt payments; lenders like it under 36% and cap most mortgages at 43%. For non-mortgage lending, such as car loans and personal loans, the back-end number is usually the only one that matters.
Should I use gross or net income?
Gross, before taxes and deductions, because that is what lenders use. If you are self-employed, use the average monthly figure from your last two years of tax returns, which is how underwriters will see it. Include all borrowers who will be on the application.
How can I lower my debt-to-income ratio quickly?
Pay off the debt with the highest payment relative to its balance; a small car loan or a card near payoff drops your DTI far more than paying down a large low-payment balance. Consolidating several card payments into one lower loan payment also lowers DTI, though it may not lower cost. Raising income works too.