Debt-to-Income Calculator

When to use this

You're planning to apply for a mortgage and want to know where you stand before a lender pulls your numbers. Your debt-to-income ratio is one of the first things underwriters check, and knowing yours in advance lets you decide whether to pay down debt first, increase your income documentation, or proceed with confidence. It's the difference between walking into a pre-approval meeting prepared and getting an unwelcome surprise.

DTI also matters when you're evaluating your own financial health outside of lending. If 45% of your gross income goes to debt payments every month, that leaves a thin margin for savings, emergencies, and quality of life — regardless of what a lender thinks. Tracking your DTI over time shows whether you're gaining financial flexibility or slowly losing it.

Use this calculator before any major financial decision: buying a home, refinancing, taking out a car loan, or co-signing for someone else. Each new debt obligation pushes your DTI higher, and understanding how a potential new payment changes the ratio helps you avoid overextending.

Good to know

The formula is straightforward: DTI = (Total Monthly Debt Payments / Gross Monthly Income) x 100. Include mortgage/rent, car loans, student loans, minimum credit card payments, personal loans, alimony, and child support. Do not include utilities, groceries, insurance, or subscriptions — lenders don't count those as "debt" for DTI purposes.

There are two types of DTI. The "front-end" ratio counts only housing costs (mortgage, property tax, insurance, HOA). The "back-end" ratio includes all monthly debts. Lenders look at both — conventional loans typically want front-end below 28% and back-end below 36%. When people say "DTI," they usually mean back-end.

Above 36% means compensating factors are needed. If your DTI is 37–43%, lenders may still approve you if you have strong compensating factors: high credit score (740+), large cash reserves (6+ months of payments), substantial down payment (20%+), or stable employment history. Above 43%, most conventional loans require an exception.

Gross income, not net. DTI uses your pre-tax income, which makes the ratio look better than it feels. A DTI of 36% on gross income could mean 45–50% of your take-home pay goes to debt. Keep that in mind when assessing affordability from a lifestyle perspective, not just a lending one.

Paying off small debts can move the needle fast. Eliminating a $200/month car payment on a $6,000 gross income drops your DTI by 3.3 percentage points. If you're on the edge of a threshold, paying off one small debt can be more effective than trying to increase your income.

Quick Reference

DTI Range	Lender View	Typical Outcome
Under 20%	Excellent	Best rates, easy approval
20–35%	Good	Standard approval, competitive rates
36%	Threshold	Conventional loan maximum (ideal)
37–43%	Acceptable	May need compensating factors
43%	QM limit	Qualified Mortgage upper boundary
44–50%	High	FHA may approve with strong credit
50%+	Very high	Difficult to qualify for most loans