Debt-to-Income (DTI) Calculator United States

Your debt-to-income ratio, or DTI, is one of the main numbers a mortgage lender uses to decide whether to approve you and how much to lend. It is your total monthly debt payments divided by your gross monthly income, as a percentage. This debt to income calculator works out that figure and the front-end housing ratio, so you can see where you stand before applying.

How the debt to income calculator works

Add every recurring monthly debt payment (car loans, student loans, minimum credit card payments, personal loans, and any current or proposed housing payment), divide the total by your gross monthly income, and multiply by 100. If you earn $6,000 a month and your debts total $1,800, your DTI is 30%. You can add a proposed new mortgage payment to see how it changes the number.

Front-end versus back-end DTI

The back-end ratio, the main figure here, includes every monthly debt obligation. The front-end ratio counts only your housing payment against gross income. Underwriters rely most on the back-end figure, but many loan programs also cap the front-end ratio, commonly around 28%. Seeing both tells you whether a high ratio comes from the mortgage itself or from other debts.

Programs set these limits differently. Conventional loans backed by the secondary-market agencies often accept back-end ratios up to around 45% for strong files, FHA loans can go further with compensating factors, and VA loans add a separate residual-income test. Know which program you are targeting, because its limit may be stricter or looser than a general rule of thumb.

What counts and what does not

DTI counts contractual debt payments, not living costs. Your mortgage or rent, car loans, student loans, personal loans, minimum credit card payments and court-ordered obligations such as child support belong in the total. Utilities, phone bills, groceries, health insurance premiums and subscriptions do not, because lenders do not treat them as debts. For credit cards, lenders use the minimum payment, not the balance. A co-signed loan usually counts against you even if someone else pays it, because you remain legally responsible.

Why lenders watch 43%

A 43% back-end ratio was long the general ceiling for qualified mortgages. The CFPB replaced that cap with a price-based test in 2021, but many lenders and programs still treat 43% as a benchmark. Above it, financing usually gets harder. Staying below it, ideally at 36% or less, opens up more loans and rates and leaves room in your budget for the unexpected.

A worked example

Suppose your gross monthly income is $5,000, you already pay $1,000 a month toward a car loan and credit cards, and you are considering a $1,000 mortgage payment. Total monthly debt becomes $2,000, so your back-end DTI is 40%. The front-end ratio is $1,000 divided by $5,000, or 20%. At 40% you are below 43% but above the more comfortable 36%, so paying down some existing debt would help.

Ways to lower the ratio

You can improve DTI from either side. Paying off a small loan entirely removes its whole payment, which often helps more than paying a little off several large balances: clearing a $400 car payment does more for the ratio than paying the same dollars off a mortgage. Refinancing or consolidating high-payment debt into a lower monthly payment also works, though a longer term can cost more interest overall. A raise, a documented bonus history or a second income the lender will count lowers the ratio too. Avoid opening new loans or financing a car in the months before a mortgage application, since one new payment can push a borderline ratio over the limit.

Assumptions and limitations

The calculator uses gross, pre-tax income, the standard basis for lenders, so the percentage looks lower than the share of take-home pay that goes to debt. It relies on the debt total you enter, so include every recurring obligation and leave out everyday costs. It does not check your figures against pay stubs or credit reports the way an underwriter would, and loan programs apply their own limits and compensating factors. Confirm the exact requirements with your lender.

About This Debt to Income Calculator

Use this debt to income calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.