Debt-to-Income (DTI) Calculator

Q: What is a good debt-to-income ratio?

Under 36% back-end DTI is the classic benchmark for comfortable finances. Conventional mortgages generally want 43%-45% or lower, and 50% is a hard ceiling for most programs. Under 20% is excellent.

Q: What counts as debt in a DTI calculation?

Recurring monthly obligations: rent or mortgage payments, car loans, student loans, personal loans, credit card minimum payments, alimony, and child support. Utilities, groceries, insurance premiums, and subscriptions do not count.

Q: Is DTI calculated on gross or net income?

Gross income — before taxes and deductions. That's how every lender computes it, which is why a DTI that sounds comfortable can still feel tight in your actual take-home budget.

The first number a mortgage underwriter checks. Calculate your front-end and back-end DTI exactly the way lenders do, and see where you stand against their cutoffs.

Back-end DTI (all debts)

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Front-end DTI (housing)

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Total monthly debt

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Rating

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Room under 36%

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The DTI formulas

Front-end DTI = Housing payment ÷ Gross monthly income × 100
Back-end DTI = All monthly debt payments ÷ Gross monthly income × 100

Worked example

Income $7,000/mo · housing $1,800 · car $450 · student loans $250 · cards $100

Front-end: 1,800 ÷ 7,000 = 25.7% · Back-end: 2,600 ÷ 7,000 = 37.1% — just over the 36% benchmark, so paying down the car or cards would help before a mortgage application.

How lenders read your DTI

Back-end DTI	What lenders see
< 20%	Excellent — very low risk
20–36%	Healthy — comfortably qualifies
36–43%	Acceptable — most conventional loans still work
43–50%	Stretched — limited programs, compensating factors needed
> 50%	Generally declined

To lower your DTI you can raise income or shrink the numerator: pay off the smallest debts entirely (each eliminated payment drops the ratio immediately — see the debt payoff calculator), avoid new financing before a mortgage application, and consider consolidating high-payment debt. Then check what your improved ratio buys you in the house affordability calculator.

Frequently asked questions

What is a good debt-to-income ratio?

Under 36% back-end is the classic benchmark; conventional mortgages typically want ≤43–45%; under 20% is excellent.

What counts as debt in a DTI calculation?

Recurring obligations: housing, car, student and personal loans, card minimums, alimony, child support. Utilities, groceries, and subscriptions don't count.

Is DTI calculated on gross or net income?

Gross (pre-tax) income — the same way every lender computes it.

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Note: Lender DTI limits vary by loan program and compensating factors. Not financial advice. Last reviewed: July 2026.