How this calculator works
Front-end ratio is housing ÷ gross income; back-end adds every other debt payment. Most mortgage lenders look for a back-end ratio under 36%, with 43% as a common ceiling.
- Front-end DTI = housing payment ÷ gross monthly income × 100.
- Back-end DTI = (housing + all other monthly debt payments) ÷ gross monthly income × 100.
- Room under a limit = gross income × limit − current payments.
Worked example
With these inputs: gross monthly income $5,000; rent or mortgage $1,500; other monthly debt payments $400.
The result is back-end dti 38.0%, with front-end (housing only) 30.0% and room under 36% $0.00. Stretched — between 36% and 43%, the usual ceiling for a mortgage.
What counts as debt?
Include minimum payments on credit cards, car loans, student loans, personal loans, and child support or alimony you pay. Rent or mortgage goes in the housing field.
Don't include utilities, phone, insurance, groceries or subscriptions. They're bills, not debts, so lenders leave them out of DTI. They still matter for your budget, which is what the Monthly Budget Calculator is for.
What's a good debt-to-income ratio?
Under 36% back-end is generally considered healthy. Many conventional mortgage programs allow up to about 43%, and some government-backed loans go higher with strong compensating factors. Every lender sets its own limits, so treat these as guidelines, not guarantees.
To lower your DTI quickly, pay off a small debt completely: its whole minimum payment disappears from the ratio. That often moves the number further than paying down part of a large balance.
Frequently asked questions
Is DTI based on gross or net income?
Gross: income before taxes and deductions. That's why this calculator asks for gross monthly income and not take-home pay.
What is the difference between front-end and back-end DTI?
Front-end looks only at housing costs. Back-end adds every other debt payment. Lenders usually care most about back-end.
Does rent count in debt-to-income ratio?
Your current rent is often left out when you apply for a mortgage, because the new mortgage payment replaces it. For a personal loan or a new lease, include it. Enter whatever housing payment will apply after the loan.
How can I lower my DTI fast?
Clear a small debt completely, avoid new credit before applying, and make sure every income source (part-time work, regular bonuses) is documented so it counts toward the income side.