What is debt-to-income (DTI) ratio?

Your debt-to-income ratio is the percentage of your gross monthly income that goes toward debt payments. Lenders use DTI to assess how much new debt you can handle. There are two versions: front-end DTI measures just housing costs (mortgage payment, taxes, insurance, HOA) divided by gross income; back-end DTI includes all monthly debt payments — housing, credit cards, auto loans, student loans, personal loans. Most lenders prefer a back-end DTI under 36%, though some FHA loans accept up to 43% with compensating factors. On a $7,000 monthly gross income, a 36% back-end DTI means up to $2,520 in total monthly debt payments.

How to use this calculator

Enter your gross monthly income (before taxes).
List your monthly debt payments: proposed housing payment (PITI), credit cards minimums, auto loans, student loans, personal loans, child support, etc.
Click Calculate to see your front-end DTI, back-end DTI, and whether the numbers fit typical lender guidelines.

Understanding your results

The calculator outputs three numbers: front-end DTI (housing only), back-end DTI (all debt), and a qualifying estimate based on standard lender thresholds. Standard guidelines: back-end DTI under 36% is excellent, 36–43% is acceptable, over 43% will likely be declined by most lenders. FHA allows up to 50% in some cases with strong compensating factors (high credit score, large down payment, significant reserves).

How to improve your DTI

Pay down credit card balances. Lenders typically use the minimum payment, but reducing your balance improves your credit profile and available credit.
Avoid new debt. Don't take on new auto loans or finance purchases while applying for a mortgage.
Increase your income. Side jobs, raises, or self-employment income (2-year history required).
Choose a less expensive home. Smaller loan = lower monthly payment = lower front-end DTI.
Increase your down payment. Bigger down payment reduces the loan amount, lowering your monthly payment.
Pay off small debts before applying. Closing a small personal loan or paid-off credit card can meaningfully lower back-end DTI.

DTI ratio guidelines by loan type

Different loan programs have different DTI thresholds. Here's what to expect:

Conventional loans: 36% back-end DTI is standard; up to 45% with strong credit (720+) and reserves
FHA loans: Up to 43% standard; up to 50% with compensating factors like high credit or large down payment
VA loans: No official DTI limit, but most lenders cap at 41-43%. The VA's residual income test is the real qualifier
USDA loans: 29% front-end, 41% back-end. USDA uses a strict "housing ratio" and "total debt ratio" system
Jumbo loans: Typically 38-43%, depending on the lender and loan amount. Higher amounts may require lower DTI

Source: CFPB: What is DTI?

Frequently asked questions

What is a good DTI ratio? Under 36% back-end DTI is healthy. Under 30% is excellent. The lower your DTI, the more borrowing power you have.

Does student loan debt count? Yes. Lenders use either the actual monthly payment or 1% of the balance for income-driven plans. Some FHA loans use 0.5% of the balance.

Can I get a mortgage with high DTI? Possibly — FHA loans accept higher DTIs with strong credit and reserves. Some lender portfolio programs allow up to 50% with compensating factors.

Debt-to-Income Calculator

Income

Monthly Debts

Proposed Mortgage