Loans & Mortgages
Debt-to-Income Ratio Calculator
Compare your monthly debt payments to gross income and see both the housing-only ratio and the total-debt ratio lenders look at.
Back-end DTI
45.0%
Total debt: $2,700 / month — High
- Front-end DTI
- 25.0%
- Housing payment
- $1,500
- Non-housing debt
- $1,200
- Total monthly debt
- $2,700
Income allocation
- Housing — 25%
- Other debt — 20%
- Remaining income — 55%
How lenders read DTI
Debt-to-income ratio is monthly debt payments divided by gross monthly income. The front-end version only counts housing; the back-end version counts everything, including car loans, student loans and credit card minimums.
A lower ratio leaves more room in your budget and makes you a stronger borrower. Most conventional mortgage lenders cap the back-end ratio around 43%, with 36% being a common conservative target.
Frequently asked questions
What is a good debt-to-income ratio?
Many lenders prefer a back-end DTI below 36%, with no more than 28% going toward housing. Some mortgage programs allow up to 43% or higher, but lower is generally safer.
What is the difference between front-end and back-end DTI?
Front-end DTI only includes housing costs. Back-end DTI includes all recurring monthly debt payments. Lenders usually care more about the back-end number.
Should I include rent in housing debt?
Yes, when you are calculating DTI for your own picture, include rent or mortgage as a housing payment. Lenders will include whichever applies to your situation.
Does DTI include utilities or groceries?
No. DTI compares debt payments to income, not total living expenses. That is why it is only one piece of the budget picture.