Debt-to-Income (DTI) Ratio Calculator

How this calculator works

Front-end DTI divides just your housing payment by your gross monthly income. Back-end DTI divides all your monthly debt payments — housing plus car loans, student loans, credit cards, and anything else recurring — by that same income. Lenders typically care most about back-end DTI when deciding how much to lend you.

What counts as a good DTI ratio?

• 36% or below: Generally considered healthy, and the threshold most conventional mortgage lenders prefer.
• 37–43%: Often still approvable, especially with strong credit or compensating factors, but with less room to spare.
• Above 43%: Many conventional loan programs consider this high risk, though some loan types allow higher ratios in specific cases.

These are general benchmarks, not universal rules — different loan programs (conventional, FHA, VA) set their own limits, and a strong credit score or large down payment can offset a higher DTI.

How to lower your DTI

You can improve your ratio by paying down existing balances — see our Credit Card Payoff Calculator to plan that out — or by increasing your income. Once you have a target DTI in mind, the House Affordability Calculator and Mortgage Calculator can help translate that into an actual home price and payment.

Frequently asked questions

Does DTI include taxes and insurance?

For mortgage purposes, "housing payment" usually means the full PITI — principal, interest, taxes, and insurance — not just principal and interest. Include your best estimate of all four here.

Is a lower DTI always better?

For loan approval purposes, yes — a lower DTI generally means better approval odds and terms. Outside of lending, a very low DTI simply reflects low debt relative to income, which is generally a sign of financial flexibility.