Debt-to-Income Ratio Calculator
Calculate your front-end and back-end debt-to-income ratios from gross income, housing costs, loans, credit cards, and other monthly debts.
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Frequently asked questions
- What is debt-to-income ratio?
- Debt-to-income ratio, or DTI, is your required monthly debt payments divided by gross monthly income. Lenders use it as one measure of whether a new payment may be affordable.
- What is the difference between front-end and back-end DTI?
- Front-end DTI uses only the monthly housing payment. Back-end DTI includes housing plus auto loans, student loans, minimum credit card payments, and other required monthly debts.
- What DTI is considered good?
- Lower is generally easier for monthly cash flow. The calculator labels up to 36 percent as lower, 36 to 43 percent as moderate, and above 43 percent as higher. These are planning bands, not universal approval limits.
- Should I use gross or net income?
- Use gross income before tax because that is the usual DTI convention. A lender may adjust qualifying income for irregular, self-employed, rental, bonus, or commission income.
- Which payments should I include?
- Include required monthly housing, loan, and minimum revolving-debt payments. Ordinary spending such as groceries and utilities is usually not part of lender DTI, although it still matters to your real budget.
- Does a low DTI guarantee loan approval?
- No. Lenders also evaluate credit history, down payment, cash reserves, loan type, property, employment, and other factors. This calculator cannot predict approval.