Debt-to-Income Ratio Calculator – Check Your DTI
Calculate your debt-to-income (DTI) ratio to see if you qualify for a mortgage or other loans.
Debt-to-Income Ratio: Lender Guidelines
Debt-to-Income ratio (DTI) = monthly debt payments ÷ gross monthly income × 100. Lenders use DTI to assess whether a borrower can manage additional debt. Two versions are used: front-end DTI (housing only) and back-end DTI (all debts).
| DTI Range | Assessment | Mortgage Eligibility |
|---|---|---|
| Under 20% | Excellent | Qualify for best rates |
| 20–35% | Good | Easily approved for most loans |
| 36–43% | Acceptable | May qualify; some lenders cautious |
| 44–49% | High | Conventional mortgage difficult |
| 50%+ | Very high | Most lenders decline; FHA max is 57% |
Conventional mortgage lenders typically require back-end DTI below 43%. FHA loans allow up to 57% with compensating factors (strong credit, reserves). The 28/36 rule specifies front-end DTI (mortgage only) under 28% and back-end under 36%. To lower DTI, either increase income or pay down existing debts — paying off a /month car payment has the same DTI effect as ,800 in annual income.
What is a good debt-to-income ratio?
Below 36% is considered good. Below 20% is excellent. For mortgage qualification, most conventional lenders want back-end DTI below 43%, though guidelines vary by loan type.
Does DTI include rent or only mortgage?
For existing renters, DTI calculations typically exclude current rent (since you'll replace it with a mortgage). All other monthly debts are included: car loans, student loans, credit card minimums, and personal loans.
"Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. Lenders generally look for a DTI of 43% or lower for qualified mortgages, while a DTI below 36% is considered a healthy level for overall financial wellbeing."