Debt-to-Income Ratio Calculator
Both ratios lenders calculate, checked against conventional and FHA guidelines.
Front-end counts housing alone; back-end counts every monthly debt obligation. Lenders weight the back-end ratio most heavily. These are guidelines rather than hard cutoffs: strong credit, reserves, or a large down payment can carry a higher ratio, and automated underwriting sometimes allows well beyond them.
Debt-to-income is the first thing a mortgage underwriter computes, and it comes in two flavours. Front-end is housing alone divided by gross monthly income. Back-end adds every other monthly debt obligation.
Worked example. On $120,000 of income, gross monthly income is $10,000. A $2,500 housing payment is a 25% front-end ratio. Add $800 of car and student loan payments and the back-end ratio is 33%. Both clear the conventional 28/36 guideline.
Frequently asked questions
What DTI do I need to qualify for a mortgage?
Conventional loans generally target 28/36, though automated underwriting often accepts back-end ratios into the mid-40s with compensating factors. FHA commonly allows 31/43 and sometimes beyond. There is no single cutoff, and the whole file matters.
What counts as debt in this calculation?
Minimum monthly payments on credit cards, auto loans, student loans, personal loans, and any court-ordered payments like alimony or child support. Utilities, groceries, insurance, and phone bills do not count, even though they are very much real expenses.
Does it use gross or net income?
Gross, before tax. This is why a ratio that looks comfortable on paper can feel tight in practice: you make the payment out of net income, which for many households is 25 to 30% smaller.
How do I lower my DTI quickly?
Pay off the smallest-balance loan that carries a monthly payment, since removing the payment is what moves the ratio. Paying down a credit card balance without closing the account also helps, because the minimum payment falls. Raising income works too, but takes longer to document.
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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.