DTI Calculator
Calculate your Debt-to-Income (DTI) ratio to understand your loan eligibility. See how your debts compare to your income.
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Monthly Debt Payments
Mortgage / Rent
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Car Loan(s)
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Student Loans
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Credit Card Minimums
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Personal Loans
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Other Debts
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36%
Debt-to-Income Ratio
Total Monthly Debt$2,125
Gross Monthly Income$6,000
Housing-Only DTI25%
0% 20% 36% 43% 60%+
Excellent Good Acceptable High
Frequently Asked Questions
- Debt-to-Income (DTI) ratio = Total monthly debt payments รท Gross monthly income ร 100. It measures what percentage of your pre-tax income goes toward debt payments. Lenders use it as a key factor when approving mortgages, car loans, and other credit.
- Under 36% is considered good by most lenders. 43% is typically the maximum for qualified mortgages. Under 28% for housing-only (front-end) DTI is ideal. The lower your DTI, the better your loan terms and approval chances.
- Include all minimum monthly debt payments: mortgage/rent, car loans, student loans, minimum credit card payments, personal loans, alimony, and child support. Do NOT include utilities, groceries, insurance, subscriptions, or one-time expenses.
- Front-end DTI (housing ratio) = housing costs only รท gross income. Lenders want this under 28%. Back-end DTI = all monthly debt payments รท gross income. This is what most people mean by 'DTI'. Lenders want back-end under 36โ43%.
- Two paths: reduce debt payments (pay down balances, consolidate high-interest debt, avoid new debt before a loan application) or increase income (raise, side income, rental income). Paying off a car loan or student loan can drop DTI significantly.
- No โ DTI is not a component of your FICO score. Credit scores use payment history, utilization, account age, credit mix, and new inquiries. However, lenders check both DTI and credit score when evaluating loan applications. High credit utilization indirectly signals high debt.
- Conventional loans typically allow up to 43โ45% DTI. FHA loans allow up to 50% with compensating factors. VA loans have flexible DTI limits but prefer under 41%. Fannie Mae/Freddie Mac allow up to 50% DTI in automated underwriting with strong credit scores.