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Debt-to-income ratio calculator
The number lenders look at first: how much of your gross monthly income is already promised to debt.
Front-end DTI
29.1%
Housing only · target ≤ 28%
Back-end DTI
41.6%
All debts · target ≤ 36%
Manageable. Many mortgages are still possible; 43% is a common ceiling for US qualified mortgages.
Monthly debts total $2,290 of $5,500 gross.
How DTI is calculated
Back-end DTI = (housing payment + all other monthly debt payments) ÷ gross monthly income × 100. With $5,500 gross income, $1,600 rent and $690 of other debt payments, that is 2,290 ÷ 5,500 = 41.6%.
Two ways to lower it: pay down balances (card minimums shrink as balances fall) or raise income. Extra debt payments come out of the savings bucket in the 50/30/20 rule, so a high DTI is a good reason to tilt that 20% toward debt for a while. For renting, see how much rent you can afford.
Questions people ask
What is a good debt-to-income ratio?
Below 36% is generally seen as healthy, with no more than 28% going to housing. 43% is a common maximum for a US qualified mortgage, and some loan programmes allow up to about 50%.
Is DTI calculated on gross or net income?
Gross — your monthly income before tax and deductions. That is why a DTI that looks fine to a lender can still feel tight on a take-home-pay budget.
What counts as debt in DTI?
Recurring monthly debt obligations: rent or mortgage (with property tax and insurance), car loans, student loans, credit card minimum payments, personal loans, and court-ordered payments. Utilities, groceries and insurance premiums are not counted.
What is the difference between front-end and back-end DTI?
Front-end DTI is housing costs divided by gross income. Back-end DTI adds every other monthly debt payment. Lenders usually quote both, for example 28/36.