About the Debt-to-Income Ratio Calculator
Debt-to-income ratio compares your monthly debt payments to your gross monthly income. Lenders use it to judge whether you can take on more debt. The front-end ratio counts housing only; the back-end ratio counts all debt payments.
How it’s calculated
Back-end DTI = total monthly debt payments ÷ gross monthly income × 100. Front-end DTI = housing payment ÷ gross monthly income × 100.
Example calculation
With $6,000 gross monthly income and $2,400 in total debt payments (including $1,600 housing), the back-end DTI is 40% and the front-end DTI is about 27%.
Frequently asked questions
What DTI do lenders want?
Many prefer a back-end DTI at or below 36%, though some mortgage programs allow 43–50%. Lower is generally better and can mean better rates. This is a guideline, not a decision.
What counts as debt?
Recurring debt payments — housing, auto loans, student loans, minimum credit-card payments, and other loans. Utilities and groceries don't count.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.