Debt-to-Income (DTI) Ratio Calculator
See how much of your gross income goes to debt payments, the number lenders check before they approve a mortgage or other loan. You'll get your front-end and back-end ratios, what they mean, and how much room you have under common lender limits.
This calculator divides your monthly debt payments by your gross monthly income. If you enter yearly income, we divide it by 12. Lenders follow their own rules about which debts and income count, and when you buy a home they use the new mortgage payment instead of your rent. Results are estimates. See our terms of use.
How to use this calculator
Start with your gross income, your pay before taxes and other deductions, per month or per year. If someone else will be on the loan with you, add their income and their debts too.
Then enter what you pay each month on each debt. Use the required payment, not the balance:
- Housing payment: your rent, or your full mortgage payment with property tax, homeowners insurance, mortgage insurance and HOA dues. Buying a home? Enter the payment you expect on the new one. Our mortgage calculator can estimate it.
- Car, student and other loans: the monthly payment on each one, including car leases.
- Credit cards: the minimum payments due on all your cards, added together, even if you usually pay more.
- Child support or alimony that you're required to pay. This field and other loans are under More options.
Results update as you type. The rating shows how lenders tend to see your ratio, and the boxes below it show your room under 36% and 43%.
What DTI is and how it's calculated
Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments. Lenders use it to judge whether you can afford a new payment:
DTI = total monthly debt payments ÷ gross monthly income × 100
The calculator works out two versions. The back-end ratio counts all your debt payments, housing included. The front-end ratio, also called the housing ratio, counts only your housing payment.
Example: say you earn $6,500 a month before taxes ($78,000 a year). You pay $1,800 for housing, $450 for a car loan, $300 for student loans and $150 in credit card minimums. That's $2,700 of debt payments, so your back-end DTI is $2,700 ÷ $6,500 = 41.5%. Your front-end ratio is $1,800 ÷ $6,500 = 27.7%.
At that income, 36% works out to $2,340 a month and 43% to $2,795. To get down to 36%, you'd need to cut your payments by $360 a month, or earn $7,500 a month ($90,000 a year) with the same debts. You have $95 of room before you'd go over 43%.
Front-end vs. back-end DTI
Lenders focus on the back-end ratio, because it shows your whole monthly debt load. Fannie Mae's DTI limits, for example, apply only to the total. Some government-backed loans also limit the front-end ratio: USDA's standard is 29% of income for housing, and FHA's is 31% when a loan is underwritten by hand.
You may also hear about the 28/36 rule. This rule of thumb says to keep housing at or below 28% of gross income and all debts at or below 36%. It isn't a hard limit for most loans, but it's a sensible target if you want room in your budget to save.
What counts in your DTI and what doesn't
DTI counts payments on money you owe. Everyday living costs don't count, even though they're a big part of your budget.
Counted:
- Your housing payment, including property tax, homeowners insurance, mortgage insurance and HOA dues
- Car loans and leases
- Student loans
- Minimum credit card payments
- Personal loans, home equity loans and loans on other property you own
- Child support and alimony you're required to pay
Not counted:
- Utilities, phone, internet and streaming services
- Groceries, gas and other living costs
- Health, car and life insurance premiums
- Income taxes, retirement savings and child care
Lenders also have detailed rules. Fannie Mae, for example, lets lenders leave out an installment loan with ten or fewer payments left, unless it still strains your budget. Car lease payments always count, though. Fannie Mae also lets lenders subtract alimony from your income instead of counting it as a debt.
DTI limits by loan type
Each loan program sets its own limits, and lenders can add stricter rules of their own. Limits are often tighter when a loan is underwritten by hand (manual underwriting) than when it's approved through the program's automated system.
- Conventional loans (Fannie Mae): 36% for loans underwritten by hand, or up to 45% with a high enough credit score and cash reserves. Loans approved through Fannie Mae's automated system, Desktop Underwriter, can go up to 50%.
- Conventional loans (Freddie Mac): for loans underwritten by hand, 36% is the guideline and 45% is the maximum. Otherwise, Freddie Mac's automated system, Loan Product Advisor, decides whether your ratios are acceptable.
- FHA loans: on loans underwritten by hand, 31% for housing and 43% for all debts. With a credit score of 580 or higher, those can rise to 37% and 47% with one compensating factor, such as cash reserves. With two, they can reach 40% and 50%.
- VA loans: a 41% guideline for all debts. VA also checks your residual income, the money left each month for living expenses after housing and other obligations. Lenders can approve a higher ratio with a written justification, which isn't needed when residual income is at least 20% above VA's guideline.
- USDA loans: 29% for housing and 41% for all debts. Ratios can go higher with compensating factors, such as a credit score of 680 or higher. Exceptions need approval from USDA or its automated underwriting system.
Here's what each common limit means at the example income of $6,500 a month:
| DTI limit | Maximum monthly debt payments |
|---|---|
| 36% | $2,340 |
| 41% | $2,665 |
| 43% | $2,795 |
| 45% | $2,925 |
| 50% | $3,250 |
A lender's limit is the most it will allow, not a budget.
How the 2021 qualified mortgage rule changed DTI limits
You may have heard that 43% is the highest DTI a mortgage can have. That figure comes from the CFPB's ability-to-repay rule. Until 2021, a common type of qualified mortgage, the General QM loan, couldn't have a DTI above 43%.
A CFPB rule that took effect on March 1, 2021, removed that cap. A General QM loan is now defined mainly by its price. Its APR must be less than a set margin above a benchmark called the average prime offer rate, and for most first mortgages that margin is 2.25 percentage points. Lenders still have to consider your DTI or residual income, but there's no longer one federal DTI limit for these loans. The new definition became mandatory on October 1, 2022.
So today, the limits you'll run into come mainly from the loan programs above and from each lender's own rules.
How to lower your DTI
You can lower your DTI by cutting your monthly payments, raising your income, or both. In the example above, paying off the credit cards would drop the ratio from 41.5% to 39.2%. Paying off the car loan instead would bring it to 34.6%.
- Target payments, not just balances. Paying off a small loan removes its whole payment. Our debt payoff calculator shows which debts you can clear first.
- Avoid new debt before you apply. A new car loan or card payment can push you over a lender's limit.
- Aim for a lower housing payment with a less expensive home, a bigger down payment or a lower rate. Our home affordability calculator shows what fits your income and debts.
- Consolidate high-payment debts into one loan with a lower payment, but watch the trade-off: a longer term usually means more interest overall. Compare the numbers with our debt consolidation calculator.
- Raise your income or apply with a co-borrower. Lenders generally count only income they can verify and expect to continue, so new income may not count right away.
DTI vs. credit utilization
These two ratios are easy to mix up. Your DTI compares your monthly debt payments with your income. Your credit utilization compares your credit card balances with your credit limits. For example, owing $3,000 on cards with $10,000 of total credit limits is 30% utilization.
Utilization is part of your credit score, and the CFPB notes that experts advise keeping it at no more than 30% of your total limit. DTI isn't part of your score, because credit reports don't include your income. Lenders look at both: your score shows how you've handled credit, and your DTI shows whether you can afford a new payment.
Paying down card balances helps on both fronts. It lowers your utilization and, usually, your minimum payments. Our credit card payoff calculator shows how fast a balance can go.
Frequently asked questions
What is a good debt-to-income ratio?
36% or less is a common target. It's the guideline Fannie Mae and Freddie Mac use for loans underwritten by hand, and a CFPB worksheet suggests homeowners keep total DTI at or below that level. Many lenders approve higher ratios, but a lower one leaves more room in your budget.
Do lenders use gross or net income?
Gross income, meaning your pay before taxes and other deductions. That makes DTI look lower than the share of your take-home pay that goes to debt. In our example, $2,700 of payments is 41.5% of $6,500 in gross income. If your take-home pay were $5,000 a month, the same payments would take 54% of it.
Should I enter my rent or my future mortgage payment?
If you're applying for a mortgage, enter the new payment with taxes, insurance and HOA dues. That's what the lender will count, since your rent ends when you move. Enter your rent to see where you stand today.
Can I get a mortgage with a DTI above 43%?
Often, yes, but it's harder. Fannie Mae allows up to 50% through its automated system, FHA allows up to 50% on loans underwritten by hand with two compensating factors, and VA loans can go above 41% with justification. Expect lenders to want stronger credit or more savings, and make sure the payment fits your budget, not just the lender's limit.
How are deferred or income-driven student loans counted?
It depends on the loan program. Fannie Mae, for example, lets lenders count a documented $0 payment on an income-driven plan. For loans in deferment or forbearance, they can use 1% of the balance or the payment that would pay off the loan on its terms. Other programs have their own rules, so ask your lender.
Last reviewed: October 2026