Personal Finance
Debt-to-Income Ratio Calculator
Lenders boil your finances down to one ratio. Know yours before they do, and what it allows you to borrow.
Debt-to-income ratio (DTI) is total monthly debt payments divided by gross monthly income, shown as a percentage. Lenders prefer DTI at or below 36%; 43% is the typical maximum for qualified mortgages. Figures are estimates before taxes and fees — verify details with a licensed advisor where needed.
Target: ≤36% DTI.
43% = typical mortgage ceiling.
Housing alone: ≤28% (front-end).
Calculate Your Debt-to-Income Ratio
Your DTI
What Is Debt-to-Income Ratio?
Debt-to-income ratio compares your fixed monthly obligations with your gross income. Lenders use it as a risk gauge, the single number that decides most mortgage approvals.
Two flavors: front-end (housing only, ≤28% preferred) and back-end (all debts, ≤36% healthy, 43% typical ceiling).
How It Is Calculated
DTI% = (monthly debt payments ÷ gross monthly income) × 100
Example: Example: $6,000 income, $1,500 rent, $500 debts → 33% DTI (healthy)
DTI bands
| DTI | Lender view |
|---|---|
| ≤ 28% housing / ≤ 36% total | Excellent |
| 36–43% | Approvable, tighter terms |
| 43–50% | Qualified-mortgage ceiling, risky |
| 50%+ | Generally not approvable |
Limitations
- Uses gross income; taxes shrink real capacity.
- Self-employed income is underwritten differently.
- Student loans in deferral still count in many programs.
Sources & Review
References used for this calculator’s formulas and thresholds:
Debt-to-Income Ratio FAQ
What is a good DTI ratio?
36% or below total debt-to-income; under 28% for housing alone.
What DTI do mortgage lenders require?
Most conventional loans cap at 43%; many lenders prefer 36%. FHA allows up to ~50% in limited cases.
How do I lower my DTI?
Pay down installment debts, refinance, or raise income, paying off small balances first removes whole payments from the ratio.
Does DTI include utilities and food?
No, only credit obligations: housing, loans, cards, alimony, child support. Living costs are separate.
Please read this first: these results are educational estimates. For real decisions, talk to a qualified professional.