Debt-to-Income Ratio Calculator
Calculate your DTI the way lenders do and see how much room you have
Income and Monthly Payments
Before taxes and deductions
Include property tax, insurance and HOA
Enter minimum required payments. Leave out living costs such as groceries, utilities and insurance premiums.
Your debt-to-income ratio
38.3%
$2,300 of monthly debt payments on $6,000 of gross monthly income
Manageable
Many lenders still approve, but some will look closer.
Your Ratios vs Common Lender Limits
Front-end ratio
25.0%
housing ÷ income
Monthly debt payments
$2,300
housing + other debts
Room under 36%
$0
more monthly debt before 36%
Room under 43%
$280
more monthly debt before 43%
What Lenders Look At
Your debt-to-income ratio compares the minimum payments on your debts with your gross monthly income. Lenders use it to judge whether you can take on a new payment. The front-end ratio counts only housing; the back-end ratio adds every other debt payment and is the one most lenders focus on.
The Formulas
Back-end DTI = all debt payments ÷ gross income
Front-end DTI = housing payment ÷ gross income
Room = income × limit − current payments
Use gross (pre-tax) monthly income and minimum payments.
Lower Your DTI
- •Pay off small balances completely to remove whole payments
- •Avoid new loans or financing before applying for a mortgage
- •Refinancing to a longer term lowers payments but can cost more interest
- •Count all regular income, such as bonuses or side work you can document
- •Paying down cards lowers minimums and helps your credit score too