Your Debt-to-Income (DTI) ratio is one of the most important numbers lenders look at when you apply for a mortgage, car loan, or personal loan. A DTI above 43% will disqualify you from most qualified mortgages. Our free DTI Calculator shows you exactly where you stand and what it means for your loan eligibility.
Debt-to-Income Ratio Calculator
DTI Ratio Calculator
Enter your gross monthly income (before taxes) and all monthly debt payments.
Monthly Debt Payments:
What Is Debt-to-Income Ratio?
DTI ratio is the percentage of your gross monthly income that goes toward debt payments. Lenders use it to assess your ability to manage monthly payments and repay borrowed money.
DTI Formula: DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
DTI Ratio Guidelines by Loan Type
| DTI Range | Rating | Mortgage Eligibility |
|---|---|---|
| Under 28% | Excellent | Qualifies for best rates |
| 28–36% | Good | Qualifies for most conventional loans |
| 37–43% | Acceptable | Max for qualified mortgages (QM) |
| 44–50% | Risky | FHA may allow; few conventional lenders |
| Over 50% | Too High | Very unlikely to qualify |
Front-End vs. Back-End DTI
Lenders actually calculate two DTI ratios:
- Front-end DTI (housing ratio): Only your housing costs (mortgage P&I, taxes, insurance) ÷ income. Ideal: under 28%.
- Back-end DTI (total DTI): All monthly debts ÷ income. This is what most people mean by DTI. Ideal: under 36%.
How to Lower Your DTI Ratio
- Pay down high-balance revolving debt first — credit card minimum payments are a big DTI culprit
- Increase your income — a side job, raise, or co-borrower all improve DTI
- Avoid taking new debt — every new loan or lease hurts your DTI
- Pay off small debts entirely — eliminating a car loan removes its full payment from your DTI calculation
- Make a larger down payment — reduces your proposed mortgage payment and thus your front-end DTI
Frequently Asked Questions
Does DTI affect my credit score?
DTI is NOT part of your credit score calculation. However, the same behaviors that raise DTI (high balances, many accounts) can also lower your credit score through credit utilization.
What income counts in DTI calculation?
Lenders include: salary, hourly wages, self-employment income, rental income, Social Security, disability, alimony, and child support — all provable, documented income. Side hustle income usually needs 2 years of tax returns.
Can I get a mortgage with 50% DTI?
FHA loans allow DTI up to 50% in some cases with compensating factors (large down payment, high credit score, cash reserves). Conventional loans rarely go above 45%.