Debt-to-Income Ratio Calculator
Your debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income. With $2,000 of monthly debt payments and $6,000 of gross income, your DTI is 33.3%. Lenders also check a front-end ratio that counts only housing costs.
By the Calculators With Steps team · Updated November 10, 2026 · How we check our math
- Front-end (housing) ratio
- 25%$1,500.00 ÷ $6,000.00
- Total monthly debt payments
- $2,000.00
- Room before 36%
- $160.0036% of income is $2,160.00
- Room before 43%
- $580.0043% of income is $2,580.00
- Housing budget at 28%
- $1,680.00front-end limit in the 28/36 rule
- Housing$1,500.00
- Other debts$500.00
- Left after debts$4,000.00
Step-by-step working
- Front-end DTI = housing payment ÷ gross monthly income = $1,500.00 ÷ $6,000.00 × 100 = 25%
- Total monthly debts = $1,500.00 housing + $500.00 other debts = $2,000.00
- Back-end DTI = total debts ÷ gross monthly income = $2,000.00 ÷ $6,000.00 × 100 = 33.33%
How your ratios compare with common limits
| Guideline | Housing limit | Total debt limit | Your result |
|---|---|---|---|
| 28/36 rule of thumb | 28% | 36% | Within limits |
| FHA standard (manual underwriting) | 31% | 43% | Within limits |
| Fannie Mae, manual underwriting | none | 36% (up to 45% with strong credit and reserves) | Within limits |
| Fannie Mae, Desktop Underwriter | none | 50% | Within limits |
Lenders set their own limits and also weigh credit score, savings and the loan type. Use the payments shown on your credit report, not your balances.
How to use the debt-to-income ratio calculator
- Enter your gross monthly income: pay before tax and deductions. For a salary, divide the annual amount by 12. Include a co-borrower’s income if you are applying together.
- Enter your housing payment. If you are applying for a mortgage, use the full proposed payment (principal, interest, taxes, insurance, PMI and HOA dues), not your current rent.
- Enter your other monthly debt payments from your credit report: car loans, student loans, credit card minimum payments, personal loans, and support payments.
The calculator shows your back-end DTI with a plain-language rating, your front-end (housing) ratio, how much room you have before 36% and 43%, and how your numbers compare with common lender limits.
The debt-to-income ratio formula
Back-end DTI = total monthly debt payments ÷ gross monthly income × 100
Front-end DTI = monthly housing payment ÷ gross monthly income × 100
The back-end ratio is the one most people mean by “DTI”. It counts every recurring debt payment. The front-end ratio counts only housing and is mainly used for mortgages. Lenders use minimum payments, not balances: a $5,000 credit card balance with a $150 minimum counts as $150.
Worked example
This is the example the Consumer Financial Protection Bureau uses, split into typical debts:
| Item | Monthly amount |
|---|---|
| Gross monthly income | $6,000 |
| Mortgage or rent | $1,500 |
| Car loan | $100 |
| Student loan | $250 |
| Credit card minimums | $150 |
| Total debt payments | $2,000 |
| Front-end DTI | 25% |
| Back-end DTI | 33.3% |
At 33.3%, this borrower fits inside the 28/36 rule with $160 a month of room before 36% and $580 before 43%. If income were $5,000 with $2,650 of debts, DTI would be 53%, too high for most mortgage programs.
DTI limits lenders use
| Guideline | Housing (front-end) | Total debt (back-end) |
|---|---|---|
| 28/36 rule of thumb | 28% | 36% |
| FHA standard, manual underwriting | 31% | 43% |
| FHA with compensating factors (580+ score) | 37% to 40% | 47% to 50% |
| Fannie Mae, manual underwriting | none | 36%, up to 45% |
| Fannie Mae, Desktop Underwriter | none | 50% |
The 28/36 rule is a long-standing guideline: keep housing at or below 28% of gross income and all debts at or below 36%. It is not a law, but it is a sensible budget for most households.
43% was the cap on a General Qualified Mortgage under the CFPB’s original ability-to-repay rule. A 2020 rule, with compliance required from October 1, 2022, replaced it with a price-based test, yet many lenders and some loan programs still treat 43% as a ceiling.
FHA loans use 31/43 as the standard for manual underwriting. HUD lets borrowers with credit scores of 580 or higher stretch to 37/47 with one compensating factor, such as cash reserves, and to 40/50 with two.
How to lower your debt-to-income ratio
- Pay down debts with the highest payment relative to balance, such as a nearly paid-off car loan or a small personal loan. Removing a whole payment moves DTI more than trimming a large balance.
- Pay off credit cards. Lower balances mean lower minimums. The credit card payoff calculator builds a plan.
- Avoid new debt before applying for a mortgage. A new car loan can push you over a limit, as the FAQ example shows.
- Add a co-borrower’s income if someone will share the loan.
- Shop for a cheaper home or a lower payment. The home affordability calculator works backward from these DTI limits to a price, and the mortgage calculator shows the full payment for a specific home.
Debt-to-Income Ratio Calculator: frequently asked questions
How do you calculate debt-to-income ratio?
Add up your monthly debt payments, divide by your gross monthly income and multiply by 100. With a $1,500 housing payment, $100 car loan, $250 student loan and $150 of card minimums ($2,000 total) on $6,000 of gross income, DTI = 2,000 ÷ 6,000 × 100 = 33.3%.
What is a good debt-to-income ratio?
36% or less is generally considered good, with no more than 28% going to housing. Many lenders accept up to 43%, and some loan programs go to 50% with strong credit or savings. Lower is always easier to approve.
What DTI do I need for an FHA loan?
FHA's standard limits for manually underwritten loans are 31% for housing and 43% for total debt. Borrowers with a credit score of 580 or higher can go to 37/47 with one compensating factor and 40/50 with two. Loans approved through FHA's automated system can sometimes exceed these.
What is the maximum DTI for a conventional mortgage?
Under Fannie Mae's guidelines, the maximum total DTI is 36% for manually underwritten loans, up to 45% with required credit scores and reserves, and 50% for loans approved through its Desktop Underwriter system.
Is 43% still the limit for a qualified mortgage?
Not as a hard cap. The CFPB's 2020 General QM rule replaced the 43% DTI limit with a test based on the loan's price, and lenders must still consider DTI or residual income. Many lenders still use 43% as an internal benchmark.
What debts are included in DTI?
Recurring obligations that appear on your credit report or in court orders: rent or the new mortgage payment (with taxes, insurance and HOA), car loans, student loans, credit card minimums, personal loans, and child support or alimony you pay. Utilities, groceries, phone bills and insurance premiums are not included.
How does a new car loan affect my DTI?
Add its payment to your debts. In the example, adding a $450 car payment raises DTI from 33.3% to 40.8%, above the 36% guideline but still inside a 43% limit.
Does DTI use gross or net income?
Gross income, before taxes and deductions. If you earn an $85,000 salary, your gross monthly income is $7,083.33, and $2,000 of monthly debt payments gives a DTI of 28.2%.
How we checked this page: every figure in the examples and FAQs above is produced by this calculator and verified by automated tests against known answers, and the rules and rates come from the sources below. Last updated . Spotted a problem? Tell us.