DTI Calculator — Debt-to-Income Ratio

Enter your income and monthly debts — see your front-end and back-end DTI ratios and exactly where you stand against conventional, FHA, and VA loan limits.

How Debt-to-Income Ratio Is Calculated

  • Front-end DTI measures only your housing costs (principal, interest, taxes, insurance) as a percentage of gross monthly income. Most loan programs want this below 28%–31%.
  • Back-end DTI adds all monthly debt obligations — car loans, student loans, credit card minimums — to your housing payment. Conventional loans typically cap this at 45%–50%; FHA allows up to 57% with compensating factors.
  • Lowering your DTI before applying improves your loan options. Paying off a car loan or credit card balance can shift you from a borderline approval into strong qualification territory.

Calculation details

Methodology

Front-end DTI equals monthly housing expense divided by gross monthly income. Back-end DTI equals housing expense plus recurring monthly debt obligations divided by gross monthly income. Both results are multiplied by 100 and shown as percentages.

Assumptions and limitations

  • Use gross income before taxes and deductions, and include only income a lender is likely to document and consider stable.
  • Debt treatment varies by loan program, especially for student loans, deferred obligations, alimony, and debts paid by another party.
  • The displayed ranges are educational comparisons; automated underwriting and compensating factors can produce different outcomes.

Worked example: front-end and back-end DTI

  • Gross monthly income: $8,000
  • Housing payment: $2,200
  • Car, student-loan, and credit-card payments: $600

Front-end DTI: 27.5%; back-end DTI: 35.0%

Housing uses 27.5% of gross income. Adding $600 of other monthly debt raises the total ratio to 35%. A lender may calculate individual obligations differently after reviewing the credit report and program rules.

Official sources

Frequently Asked Questions

What is a good debt-to-income ratio for a mortgage?

A back-end DTI below 36% is considered excellent by most lenders. Below 43% is generally good and qualifies for most conventional loan programs. Between 44%–50% is acceptable for many programs but may limit your options. Above 50% typically requires an FHA loan with compensating factors such as strong cash reserves or a high credit score.

What counts as debt in a DTI calculation?

Lenders include any recurring monthly payment obligation that appears on your credit report: mortgage or rent, car loans, student loans, minimum credit card payments, personal loans, child support, and alimony. They do not include utilities, cell phone bills, insurance premiums, or subscription services.

Does gross or net income get used to calculate DTI?

Lenders always use gross income — your income before taxes and deductions. This is true for W-2 employees, self-employed borrowers (typically averaged over 2 years of tax returns), and retirement income. Using net income would result in a lower, less favorable DTI.

How can I lower my DTI before applying for a mortgage?

The two levers are reducing debts or increasing income. Paying off a small installment loan or a credit card balance directly reduces your monthly obligations. Avoid taking on new debt (car payments, personal loans) in the months before applying. If you're self-employed, documenting additional income sources through tax returns can also help.

Does student loan debt count against my DTI?

Yes. For conventional loans, lenders use the actual monthly payment shown on your credit report. If your student loans are in income-based repayment (IBR) with a $0 payment, Fannie Mae and Freddie Mac guidelines require lenders to use 0.5%–1% of the outstanding balance as the assumed payment. FHA uses 0.5% of the balance if the payment is $0.

How to use this estimate

This calculator is an educational planning tool. Results are based on the figures and assumptions entered by the reader, use standard mortgage mathematics, and are not a loan offer, approval, or substitute for a lender's Loan Estimate. Taxes, insurance, fees, mortgage insurance, and available rates vary by borrower, property, lender, and location.

Review the assumptions, compare more than one scenario, and confirm the final numbers with a licensed mortgage professional before making a financial commitment.