What is a debt-to-income ratio?

Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward monthly debt payments. Lenders use it to measure your ability to manage monthly payments and repay borrowed money. There are two versions: the front-end ratio covers housing costs only, while the back-end ratio covers all recurring monthly debts.

What DTI do I need to qualify for a mortgage?

Conventional loans typically require a back-end DTI of 43% or lower, though many lenders prefer 36% or below. FHA loans allow up to 57% in some cases with compensating factors. VA loans have no official DTI cap but lenders usually want 41% or below. The front-end ratio (housing only) is generally expected to stay below 28% for conventional loans.

What counts as monthly debt?

Monthly debts include mortgage or rent, car loan payments, minimum credit card payments, student loan payments, personal loan payments, child support or alimony, and any other recurring loan obligation. Utilities, groceries, phone bills, and subscriptions are not counted as debt by lenders.

What is gross monthly income?

Gross monthly income is your income before taxes and deductions. For salaried employees, divide your annual salary by 12. For hourly workers, multiply your hourly rate by average weekly hours, then by 52, then divide by 12. Self-employed borrowers typically use a two-year average of net income from tax returns.

How can I lower my DTI?

You can lower your DTI in two ways: reduce your monthly debt payments (pay off loans, pay down credit cards, avoid new debt) or increase your gross income (raise, side income, co-borrower). Paying off a small installment loan in full often produces the largest single-payment DTI drop.

Debt-to-Income Calculator

Name: Debt-to-Income Calculator
Availability: InStock
Author: Nham Vu

Enter your gross monthly income and monthly debt payments to instantly see your front-end and back-end DTI ratios and whether you qualify for a mortgage.

Your Financial Details

Gross Monthly Income

Before taxes and deductions

Monthly Housing Cost Front-end

Mortgage P&I, property tax, insurance, HOA

Other Monthly Debts Back-end

Front-End DTI

Housing costs only

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$0 housing / $0 income

Back-End DTI

All monthly debts

—

$0 total debts / $0 income

Monthly Payment Breakdown

Total Monthly Debts $0

Mortgage Lender Guidelines

Conventional Loan

Max front-end 28% / back-end 36–43%

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FHA Loan

Max front-end 31% / back-end 43% (up to 57% with compensating factors)

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VA Loan

No official DTI cap — lenders typically prefer back-end 41% or below

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DTI Scale (Back-End)

Under 36%
Excellent

36%–49%
Caution

50%+
High Risk

Color coding applies to the back-end ratio. Individual lender guidelines vary by loan type, credit score, and compensating factors.

Summary

Enter your gross monthly income and monthly debt payments to instantly see your front-end and back-end DTI ratios and whether you qualify for a mortgage.

How it works

Enter your gross monthly income (before taxes) in the Income field.
Enter your monthly housing cost (mortgage principal, interest, taxes, insurance) in the Housing field.
Add each of your other monthly debt payments — car loan, student loans, credit cards, and any other obligations.
The front-end DTI (housing only) and back-end DTI (all debts) update instantly.
Review the color-coded assessment to see where your ratios stand against lender guidelines.

Use cases

A first-time homebuyer estimating whether their current debt load will allow them to qualify for the mortgage they want.
A homeowner refinancing who wants to see how the new payment affects their DTI before applying.
A personal finance planner identifying which debts to pay down first to bring DTI below the 36% conventional lending threshold.
A loan officer quickly checking a client's qualifying ratios before pulling a full credit report.

Frequently Asked Questions

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Last updated: 2026-05-23 · Reviewed by Nham Vu