Debt-to-Income Ratio Calculator
Calculate your DTI ratio instantly to see if you qualify for a mortgage, car loan, or other financing.
Monthly Debt Payments
Gross Monthly Income
What Lenders Look For
Your debt-to-income ratio is one of the most important numbers lenders evaluate when you apply for credit. It tells them how much of your monthly income is already committed to debt payments, and whether you can comfortably take on additional borrowing.
Under 36% — Excellent. You're in a strong position. Most lenders will view you favorably, and you'll likely qualify for the best interest rates and loan terms available.
36% to 43% — Acceptable. Many lenders will still approve you, but you may not qualify for the most competitive rates. Conventional mortgages typically max out at 43% DTI.
43% to 50% — Challenging. Options narrow significantly. FHA loans may still be available (up to 57% with compensating factors), and some non-QM lenders work in this range.
Over 50% — Difficult. Most mainstream lenders will decline applications at this level. Focus on paying down debt or increasing income before applying for new credit.
DTI Ratio Guides
Learn more about debt-to-income ratios for specific loan types and situations:
Frequently Asked Questions
What is a debt-to-income ratio?
Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward paying monthly debt obligations. It's calculated by dividing your total monthly debt payments by your gross monthly income and multiplying by 100. For example, if you pay $2,000 in monthly debts and earn $6,000 gross per month, your DTI is 33%.
What is a good DTI ratio?
A DTI ratio of 36% or less is generally considered good by most lenders. The ideal breakdown is no more than 28% for housing costs (front-end DTI) and no more than 36% total (back-end DTI). This is known as the "28/36 rule" used by many conventional mortgage lenders.
What debts are included in DTI?
DTI includes recurring monthly debt obligations: mortgage or rent payments, car loans, student loans, minimum credit card payments, personal loans, child support, and alimony. It does not include utilities, groceries, health insurance premiums, cell phone bills, or other general living expenses.
What is the maximum DTI for a mortgage?
Conventional mortgages (Fannie Mae/Freddie Mac) typically cap at 43-45% DTI, though up to 50% is possible with strong compensating factors like high credit scores or large reserves. FHA loans allow up to 57%, and VA loans have no hard cap but generally prefer 41% or below.
How do I lower my DTI ratio?
You can lower your DTI by: paying down existing debts (start with smallest balances), increasing your income through raises or side work, refinancing loans for lower monthly payments, avoiding new debt, or consolidating multiple payments into one lower payment.
What is the difference between front-end and back-end DTI?
Front-end DTI (also called the housing ratio) only includes housing-related costs: mortgage principal, interest, taxes, and insurance (PITI). Back-end DTI includes all monthly debt obligations, including housing. Most lenders evaluate both, preferring front-end below 28% and back-end below 36%.
Does DTI affect my credit score?
No, DTI does not directly factor into credit score calculations. Credit scores focus on payment history, credit utilization, length of history, credit mix, and new inquiries. However, the same high debt levels that raise your DTI often result in high credit utilization, which does hurt your score.
Is gross or net income used for DTI?
Lenders use gross monthly income (before taxes and deductions) when calculating DTI. This includes your salary, wages, bonuses, commissions, tips, rental income, Social Security benefits, alimony or child support received, and other verifiable regular income.