Debt-to-Income Ratio Calculator
The Debt-to-Income Ratio Calculator computes your front-end (housing) and back-end (total debt) ratios from your gross income and monthly obligations, and tells you whether you're within common lender limits.
What this means
DTI compares your monthly obligations to your gross monthly income. Lenders use it to judge risk: lower is safer, and most prefer total DTI under 36–43%.
How we calculate it
Formula
Back-end DTI = (housing + debts) ÷ gross monthly income. Front-end DTI = housing ÷ gross monthly income.Worked example
$8,000 monthly income with $1,500 housing and $500 in other debts:
- 1Total obligations = $1,500 + $500 = $2,000
- 2Back-end DTI = $2,000 / $8,000 = 25%
- 3Front-end DTI = $1,500 / $8,000 = 18.75%
Important assumptions
- Income is gross (before taxes) and monthly obligations are current.
- Lenders use their own thresholds; this is a guideline.
Frequently asked questions
What DTI do I need for a mortgage?
Most conventional lenders cap the back-end DTI around 43%, and many prefer 36% or less. Keeping housing under 28% of income is a common front-end target.
How can I improve my DTI?
Pay down debts, avoid adding new obligations, and increase income. Even small reductions in monthly debt raise the amount lenders will approve.