Debt-to-Income Ratio Calculator
Lenders judge you by a ratio before they judge you by anything else. Compute your front-end and back-end DTI and see exactly where you stand against the thresholds that decide approvals.
Your results
Charts & visualization
Back-end DTI vs lender thresholds
Green zones earn better rates; red zones face denials or pricing penalties.
Every chart’s underlying numbers are available as text — use the “view as table” control under each chart.
How it works
Two ratios matter:
- Front-end — housing cost ÷ gross income. Traditional guidance caps around 28%.
- Back-end — housing plus all recurring debt ÷ gross income. Conventional mortgages typically want ≤36%, with automated approvals stretching to 43%–45%+ depending on credit profile and program.
Credit card minimums count even if you pay more than required. The headroom figure shows how much additional monthly debt payment stays inside the 36% line — useful when car shopping ahead of a mortgage application.
Formula used
Gross income— before tax, all stable sourcesHousing— rent, or full PITI + HOA for ownersThresholds— 28 strong · 36 standard · 43 stretch · 50 danger
Example calculation
With $7,500 gross income, $1,900 housing, and $650 in other debt payments, back-end DTI is 34.0% and front-end is 25.3%. Lender view: Acceptable. About $150 of additional monthly debt capacity remains before crossing the conventional 36% line — worth knowing before financing furniture alongside a home purchase.
Assumptions & limitations
- Gross income basis, matching lending practice.
- Card minimums as reported on statements count fully.
- Variable income typically needs two-year history for lenders.
- Utilities, insurance premiums, and subscriptions do not count as debt for DTI.
Results are planning estimates based on your inputs and the stated assumptions — not financial advice or a loan offer. Verify important figures with your lender or advisor.
Frequently asked questions
What is a good debt-to-income ratio?
Under 28% back-end is strong; up to 36% fits conventional comfort; 43%–45% is where many automated approvals top out. Lower always prices better.
Does DTI include rent?
Yes for renters — rent is the housing component. For owners it is full PITI plus HOA dues, not just principal and interest.
How fast can I lower my DTI?
Two levers: raise verified income or retire debts. Paying off a $300/month card drops back-end DTI four points at $7,500 income — often enough to change approval tiers.
Do student loans on deferment count?
Often yes — lenders commonly impute a hypothetical payment around 0.5%–1% of balance when nothing reports. Check program-specific rules.