How to use the debt-to-income calculator
- Enter your Gross income (before taxes) and choose Per month or Per year.
- Enter your Housing payment. For a mortgage application, use the new payment including property tax, insurance and HOA dues. The mortgage payment calculator can estimate it.
- Add the minimum required payments for car loans, student loans, credit cards and other debts. Leave a field at 0 if it does not apply.
- Read your back-end ratio, your housing (front-end) ratio and how much room you have before common lender limits.
How DTI is calculated
Back-end DTI = all monthly debt payments ÷ gross monthly income × 100
Front-end DTI = housing payment ÷ gross monthly income × 100
Lenders use gross income and the minimum payments that appear on your credit report, plus your housing cost, as the Consumer Financial Protection Bureau explains. For conventional mortgages, Fannie Mae's Selling Guide (B3-6-02) sets a 36% maximum for manually underwritten loans, up to 45% with strong credit and reserves, and up to 50% for loans approved through its Desktop Underwriter system. The labels here follow those lines: 36% or less is healthy, 36% to 43% manageable, 43% to 50% high and above 50% very high. A 28% housing ratio is a common guideline for the front-end number.
Worked example
The default inputs are $6,000 a month of gross income, a $1,200 housing payment, $350 for a car, $150 for student loans and $100 in card minimums. Total debt payments are $1,800, so the back-end ratio is 1,800 ÷ 6,000 = 30.0%, labeled Healthy. The housing ratio is 1,200 ÷ 6,000 = 20.0%. At 36% your payments could total $2,160, so the tool shows $360 of room; the 43% and 50% lines leave $780 and $1,200.
Limits and edge cases
- This is an estimate. Each lender decides which income counts; self-employed, bonus and overtime income are often averaged over two years.
- Lenders may use a set percentage of a balance for student loans in deferment, so their figure can differ from yours.
- DTI ignores living costs such as food and utilities, so a ratio a lender accepts can still be a tight budget.
- The gauge tops out at 60%; higher ratios are shown in the number above it.
Frequently asked questions
What is a good debt-to-income ratio?
36% or less is the classic target and reads as low risk to lenders. Between 36% and 43% you can still qualify for most loans. Fannie Mae's automated underwriting allows up to 50% for a conventional mortgage when the rest of your application is strong.
Does rent count in my debt-to-income ratio?
For a mortgage application, no: the lender replaces your rent with the new mortgage payment. For other loans, some lenders count rent as your housing cost. This calculator counts whatever you enter in the housing field.
Which bills are not included in DTI?
Utilities, phone and streaming bills, groceries, car and health insurance and other living costs are left out. DTI counts your housing payment plus debts on your credit report, such as loans and card minimums, and court-ordered payments like child support.
Is DTI based on gross or take-home pay?
Gross pay. Lenders divide by income before taxes and payroll deductions, so using take-home pay would make your ratio look higher than the one a lender calculates.
How can I lower my DTI quickly?
Pay off a small loan or card so its minimum payment disappears, avoid new credit before you apply, or add a co-borrower's income. Paying down a card only helps once its minimum payment drops.
Working on the debt side? The credit card payoff calculator shows how fast extra payments clear a balance, and the loan payoff calculator does the same for installment loans.
Sources: Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios; CFPB, What is a debt-to-income ratio? Lender rules change and vary by loan program; this tool is an estimate, not a loan decision.