Debt-to-Income Ratio Calculator
Debt-to-income is the ratio lenders check before approving a mortgage, car loan or card: your monthly debt payments divided by your gross monthly income. Find yours and see how it reads.
Your numbers
Result
- Front-end DTI (housing)
- 28.33%
- Debt room left at 36%How much more monthly debt would still keep you at or under 36%.
- $0.00
| Ratio | Yours | Guideline |
|---|---|---|
| Front-end (housing only) | 28.3% | 28% or less |
| Back-end (all debts) | 36.7% | 36% or less |
| Qualified mortgage cap | 36.7% | 43% |
How DTI is calculated
DTI = monthly debt payments ÷ gross monthly income. Lenders look at it two ways: the front-end ratio counts only housing (rent, or mortgage principal + interest + taxes + insurance), and the back-end ratio adds every other required payment — car loans, student loans, credit card minimums. It uses gross (pre-tax) income, and it ignores expenses that aren't debts: groceries, utilities, insurance premiums, subscriptions.
The 28/36 rule and the 43% cap
The traditional guideline is 28/36: housing at or under 28% of gross income and all debts at or under 36%. Ratios up to 43% are generally the ceiling for a qualified mortgage, and some programs stretch to about 50% with strong compensating factors — but approval odds and rates get worse as DTI climbs. Under 36% is where applications are most comfortable.
How to lower your DTI
Two levers: shrink the numerator — pay down a loan entirely (its whole payment leaves the ratio), pay cards below the minimum-driving balances, avoid new financing before a mortgage application — or grow the denominator with documented income (raise, second job, bonus history). Even one cleared car payment of $400 on a $6,000 income cuts DTI by almost 7 points.
Informational and educational result. Not a substitute for professional advice.
Frequently asked questions
Sources
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