Debt-to-Income Ratio Calculator
Your debt-to-income ratio is the single number lenders lean on hardest when deciding whether — and how much — to lend. It measures the slice of your gross monthly income already committed to debt. This calculator reports both ratios lenders care about: the front-end, which counts only your housing payment, and the back-end, which counts every debt. Knowing them before you apply tells you where you stand and how much room you have.
- Front-end DTI
- 24.00%
- Back-end DTI
- 32.00%
- Total monthly debt
- $1,600.00
Your back-end ratio of 32% sits within the comfortable range most lenders prefer (typically under 36%), leaving room in your budget for savings and the unexpected.
How it works
There are two versions of the ratio. The front-end ratio divides your housing payment alone — mortgage or rent plus property tax, insurance, and any HOA dues — by your gross monthly income. It answers how much of your income housing consumes.
The back-end ratio is broader and more important. It adds every other recurring debt payment — car loans, student loans, minimum credit-card payments, personal loans — to the housing payment, then divides by gross income. Lenders use this figure to gauge whether you can shoulder a new mortgage on top of what you already owe.
Both use gross income, the amount before tax, because that is the standard lenders apply. A lower ratio signals more breathing room and makes approval — and a better rate — more likely.
Front-end DTI = housing payment ÷ gross monthly income × 100. Back-end DTI = (housing payment + all other monthly debt payments) ÷ gross monthly income × 100. Both use gross (pre-tax) income. The back-end ratio is the figure lenders weigh most heavily.
Worked example
Suppose you earn 5,000 a month before tax, your housing payment is 1,200, and your other debts total 400. Your front-end ratio is 1,200 ÷ 5,000 = 24%. Your back-end ratio is (1,200 + 400) ÷ 5,000 = 1,600 ÷ 5,000 = 32%. Both sit comfortably under the common thresholds — front-end below 28% and back-end below 36% — so a lender would view this profile as low-risk.
Things to watch out for
Use gross income, not take-home pay, or your ratio will look worse than lenders calculate it. Include the full housing cost (tax, insurance, HOA), not just principal and interest, for an accurate front-end figure. Lenders count only debts that appear on your credit report or have a fixed monthly obligation — utilities, groceries, and subscriptions are not counted. If your income varies, lenders typically average it over time rather than using a peak month.
Frequently asked questions
What is a good debt-to-income ratio?+
Lenders generally prefer a back-end ratio under 36%, and many will not approve a mortgage above 43%. For the front-end ratio, under 28% is a common comfort zone. Lower is always better — it signals more room in your budget.
What is the difference between front-end and back-end DTI?+
Front-end counts only your housing payment against income. Back-end counts your housing payment plus all other debts — car, student, credit cards. Lenders weigh the back-end ratio most because it reflects your total obligations.
Should I use gross or net income?+
Use gross income — your pay before tax and deductions. That is the standard lenders apply, so using net (take-home) pay would overstate your ratio and misrepresent how a lender sees you.
How can I lower my DTI?+
Pay down or pay off existing debts to cut the numerator, or increase your gross income to raise the denominator. Even clearing one small loan or card balance can move your back-end ratio meaningfully.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22