Calculate your front-end and back-end DTI ratios
This debt-to-income (DTI) calculator computes both your front-end ratio (housing payment only) and back-end ratio (total monthly debt payments) as percentages of your gross monthly income. Lenders use these ratios to evaluate your ability to manage monthly payments and repay loans.
Your debt-to-income ratio is one of the most important factors lenders consider when evaluating mortgage, auto loan, and personal loan applications. Monitoring your DTI over time helps you maintain financial health and improves your chances of qualifying for favorable loan terms.
The front-end DTI is the housing payment divided by monthly income. The back-end DTI is total monthly debt payments divided by monthly income. Both are expressed as percentages. Lenders typically prefer a front-end ratio at or below 28% and a back-end ratio at or below 36%.
A back-end DTI of 36% or less is considered good by most lenders. Ratios between 37% and 43% are fair but may require additional documentation. A DTI above 43% is generally considered poor and may make it difficult to qualify for a mortgage or other loans.
You can lower your DTI by paying down existing debts, increasing your income, or avoiding new debt. Even small reductions in credit card balances or consolidating high-interest debt can meaningfully improve your DTI and strengthen your loan application.
Most conventional mortgage lenders require a front-end DTI of 28% or less and a back-end DTI of 36% or less. FHA loans are more flexible, allowing back-end DTI up to 43% and sometimes higher. USDA and VA loans also have their own DTI thresholds. A lower DTI improves your chances of approval and better rates.
Student loans are included in your back-end DTI calculation even if they are in deferment or forbearance. Lenders typically use either the monthly payment shown on your credit report or 0.5% to 1% of the outstanding loan balance as the imputed monthly payment, whichever is higher.
DTI measures your debt relative to your income and is used by lenders to assess your ability to take on new payments. Your credit score measures your history of repaying debt on time. Both are important — a low DTI and good credit score together give you the best chance of loan approval and favorable terms.