How the DTI calculator works
Your debt-to-income ratio compares the money you must pay toward debts each month with the money you earn before taxes. Lenders look at two versions. The front-end ratio counts only housing costs: rent or the mortgage payment with property tax, insurance and HOA. The back-end ratio adds every other required debt payment, such as car loans, student loans, minimum credit card payments and child support.
The formula
Back-end DTI = total monthly debt payments ÷ gross monthly income × 100. Front-end DTI = housing payment ÷ gross monthly income × 100. Everyday expenses like groceries, utilities and phone bills are not counted.
Example
If you earn $6,000 a month before tax and pay $1,500 for housing, $300 for a car and $200 in card minimums, your debts total $2,000. Your back-end DTI is 33.3% and your front-end DTI is 25%. Both are within the range most conventional lenders accept.
What lenders look for
A classic guideline is 28% front-end and 36% back-end. Many conventional loans allow back-end ratios up to about 45%–50% with strong credit or reserves, and FHA loans can go higher in some cases. Lowering your DTI — by paying off a small loan or increasing income — can qualify you for a better rate as well as a larger loan.
Frequently asked questions
Is DTI based on gross or net income?
Lenders use gross income, which is your pay before taxes and deductions.
Do utilities count in DTI?
No. Only debt obligations that appear on your credit report or court-ordered payments are counted, plus your housing payment.
What is a good DTI ratio?
Under 36% is generally considered healthy. Above 43% can make it harder to qualify for many mortgages.
Should I use the full card balance?
No. Use the minimum monthly payment shown on each statement.
Results are estimates for educational purposes only and are not financial, tax, legal or medical advice. See our disclaimer. Last reviewed 2026-10-22.