Your debt-to-income ratio is the single most important number in mortgage lending — more important than your credit score for determining how much you can borrow. DTI is calculated by dividing your total monthly debt payments by your gross monthly income. A DTI of 36% or below is considered good. Most conventional mortgages require DTI under 43%, while FHA loans allow up to 50% with compensating factors. A $75,000 salary with $1,500 in monthly debt payments gives you a DTI of 24% — leaving comfortable room for a mortgage payment.
Debt-to-Income Calculator
Calculate your debt-to-income ratio to see if you qualify for a mortgage.
DTI Qualification Ranges
General lender guidelines
| DTI Range | Rating | Likelihood of Approval |
|---|---|---|
| Under 28% | Excellent | Very high — best rates available |
| 28-36% | Good | High — qualifies for most programs |
| 36-43% | Fair | Moderate — may need compensating factors |
| 43-50% | Borderline | Low — limited to FHA or special programs |
| Over 50% | Poor | Very low — unlikely without exceptions |
How to Use This Calculator
- Enter your gross monthly income — before taxes and deductions
- List all monthly debt payments: mortgage/rent, car loans, student loans, credit card minimums, personal loans
- View your front-end DTI (housing costs only) and back-end DTI (all debts)
- See how much additional monthly debt you could take on while staying under key thresholds
- Use this to determine your maximum affordable mortgage payment
How It Works
This debt-to-income calculator uses standard formulas to provide accurate results.
The basic rule:
- Front-End DTI = Housing Payment / Gross Monthly Income × 100
- Back-End DTI = Total Monthly Debt / Gross Monthly Income × 100
Tax laws and financial markets change frequently. Verify current rates with your financial institution.
Tips & Considerations
- Lenders use your minimum required payments, not what you actually pay. If your credit card minimum is $25 but you pay $500, only $25 counts toward DTI.
- Paying off a car loan before applying for a mortgage can dramatically improve your DTI and increase your approved loan amount by $50K-$100K.
- Student loans on income-driven repayment plans use the IDR payment amount for DTI calculations, not the standard 10-year payment.
- A DTI under 36% qualifies you for the best mortgage rates. Between 36-43% you can still qualify but may pay higher rates or need a larger down payment.
Frequently Asked Questions
What is a good DTI ratio?
Most lenders prefer a back-end DTI of 36% or less. FHA loans allow up to 43%, and some lenders go to 50% with strong compensating factors like high credit scores or large reserves.
What is front-end vs back-end DTI?
Front-end DTI includes only housing costs. Back-end DTI includes all monthly debt payments. Lenders primarily look at back-end DTI.
How do I lower my DTI?
Pay off debts, increase income, or reduce the mortgage amount you are seeking. Even paying off a small car loan can significantly improve your ratio.
Does DTI affect my interest rate?
Not directly, but a high DTI may limit you to certain loan programs with higher rates. Lower DTI gives you access to the best rates and terms.