Use the calculator below to estimate your debt to income (DTI) ratio and see how a new mortgage payment might fit into your budget. The tool shows both your housing-only ratio (front-end DTI) and your total debt ratio (back-end DTI), then compares them with common limits for conventional, FHA, USDA, and other mortgage programs.
Lenders use DTI to evaluate whether your monthly debt load looks manageable alongside a new home loan. A lower ratio generally makes qualifying easier, but there is no single magic cutoff that applies to every borrower or every program. Your overall profile (credit, down payment, reserves, property type, and more) also matters.
Debt-to-Income (DTI) Calculator
Debt to income basics: how lenders define DTI
Your debt to income ratio is a simple fraction: your total monthly debt payments divided by your gross monthly income, expressed as a percentage. It is one way lenders estimate how stretched your budget might become if you add a new mortgage payment on top of your existing obligations.
- Front-end DTI (housing ratio):
Your total monthly housing cost divided by your gross monthly income. Housing cost usually means rent for renters or full PITI for homeowners (principal and interest, property taxes, homeowners insurance, mortgage insurance if required, plus HOA dues when applicable). - Back-end DTI (total debt ratio):
Your housing payment plus other counted monthly debts (such as auto loans, student loans, credit card minimums, personal loans, and court-ordered obligations) divided by your gross monthly income. This is the ratio most lenders quote as “DTI.” - General formula:
DTI (%) = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100.
When you see a notation like 28/36, the first number is the front-end ratio and the second number is the back-end ratio. For example, 28/36 has long been a common reference point for conventional mortgage affordability, while FHA, USDA, and VA have their own benchmark ratios and underwriting rules.
How to calculate your debt to income ratio (step by step)
The calculator above runs the math for you, but it helps to understand what is happening behind the scenes. Here is a simple way to compute your back-end DTI by hand:
- List your counted monthly debts.
Include your housing payment (rent or full PITI + HOA), auto loans, student loans, personal loans, minimum credit card payments, and court-ordered obligations such as child support or alimony that will continue for at least several years. - Add the monthly payments together.
Add up these required minimum payments to get your total monthly debt payment. Use the minimums that appear on your statements, not the higher amounts you sometimes choose to pay. - Find your gross monthly income.
Add all income received before taxes and payroll deductions. This usually includes salary or hourly wages, plus any other income that is stable, documented, and likely to continue under the loan program’s rules (such as certain bonuses, overtime, commissions, or eligible side income). - Apply the formula.
Divide your total monthly debt by your gross monthly income, then multiply by 100 to convert the result into a percentage:
DTI (%) = (Total Monthly Debt ÷ Gross Monthly Income) × 100.
For the front-end ratio, you use the same formula but only include your housing payment in the numerator. The calculator reports both numbers and labels them clearly so you can see how much of your income goes specifically to housing compared with all other loans combined.
Imagine you earn $7,000 per month before taxes. Your current rent is $1,900, you owe $300 per month on an auto loan, $150 on student loans, and $100 in credit card minimums. Your total monthly debt is $2,450. Your back-end DTI is $2,450 ÷ $7,000 ≈ 0.35, or 35%. Your front-end DTI (housing only) would be $1,900 ÷ $7,000 ≈ 27%.
What is a good debt to income ratio?
There is no single universal DTI cutoff that guarantees approval or denial. Each lender and loan program sets its own standards, and automated underwriting systems can approve higher ratios when other parts of the file are strong. That said, many lenders still group DTIs into broad ranges when they think about risk and affordability.
| Back-end DTI | How lenders may view it |
|---|---|
| 36% or less | Generally viewed as strong. Your debt load is modest relative to your income, which often makes mortgage approval easier and gives you more room in your budget for savings and emergencies. |
| 37%–49% | Manageable but worth watching. Many conforming and government-backed mortgages are still approved in this band, especially when you have good credit scores, some cash reserves, and a reasonable down payment. However, you may want to lower debts before taking on a larger housing payment. |
| 50% or higher | High and potentially risky. More than half of your gross income goes to debt payments. Some lenders may decline, limit the size of the loan, or require strong compensating factors such as excellent credit and significant reserves. |
Traditional “rule of thumb” guidelines, such as 28/36 for conventional loans or 31/43 for FHA, are still widely referenced, even though modern qualified mortgage rules and automated underwriting systems use more complex, price-based and risk-based criteria. Your actual approval will depend on the full picture, not just a single ratio.
What debts count in DTI (and what does not)?
When a lender calculates your debt to income ratio, they focus on recurring, documented obligations that are likely to continue. Everyday spending matters for your budget, but it usually does not appear directly in the DTI math.
Debts that are usually included in DTI
- Housing payments: Rent, or full PITI on a mortgage (principal, interest, property taxes, homeowners insurance, mortgage insurance when required, and HOA dues).
- Installment loans: Auto loans, personal loans, and other fixed-term loans with required monthly payments.
- Student loans: Federal or private student loan payments, often using either the actual payment or a program-specific percentage of the balance if the loans are in deferment or an income-driven plan.
- Revolving debt minimums: Minimum required payments on credit cards and lines of credit, even if you usually pay more than the minimum.
- Court-ordered obligations: Alimony, child support, or other court-ordered payments that will continue for at least several years after the loan closes.
- Other documented debts: Certain business debts that you are personally responsible for, if they are not fully covered by business income under program rules.
Expenses that are usually excluded from DTI
Most lenders do not include normal living expenses in the DTI calculation, even though you still need to plan for them in your budget. For example, DTI typically excludes:
- Utilities such as electricity, gas, water, trash, and internet
- Groceries and everyday household spending
- Gas for your car, parking, and routine maintenance
- Health, auto, and homeowners insurance premiums (unless they are part of your PITI payment)
- Streaming services, phone plans, and other discretionary subscriptions
These costs still matter. A DTI ratio that technically fits a lender’s limit might feel uncomfortably tight once you add real-world spending. Use the calculator as one input for your decision, not the only one.
How lenders use DTI for mortgages
Debt to income ratio is one of several inputs lenders consider when deciding whether to approve a mortgage and how much you can borrow. In addition to DTI, underwriters weigh your credit scores, down payment, cash reserves, property type, occupancy (primary home vs. rental), and the pricing and risk rules of the specific program you are applying for.
Many conventional loans sold to Fannie Mae or Freddie Mac may accept back-end DTIs up to about 45%–50% when their automated systems approve the file and when other factors look strong. Government-backed programs such as FHA, USDA, and VA often reference the low-40% range in their training materials and handbooks, though automated approvals can also allow higher ratios in some cases.
Common mortgage DTI benchmarks (high-level overview)
- Conventional conforming loans:
Traditional guidance often references 28/36 (28% front-end, 36% back-end), though automated approvals may allow back-end DTIs up to about 45–50% with strong applications. - FHA loans:
FHA training materials commonly reference around 31% for the front-end ratio and 43% for the back-end ratio, with some flexibility for certain energy-efficient or manually underwritten loans. - USDA loans:
USDA guidance frequently cites a 29% front-end ratio and 41% back-end ratio as a starting point when evaluating guaranteed rural housing loans. - VA loans:
VA does not rely on a hard DTI cap in the same way, but a 41% back-end ratio is often used as a reference point alongside a detailed residual income test based on family size and region.
Program rules and investor overlays can change over time, and individual lenders may set stricter standards than the minimums shown in handbooks. Treat these benchmarks as educational guidelines rather than promises that any specific loan will be approved at a given ratio.
How to use this debt to income calculator
The HonestCredit DTI calculator is designed to mirror how lenders think while still being easy to use. It separates your housing expenses, non-housing debts, and income so you can see exactly which pieces are driving your ratio.
Start by entering your gross monthly income (before taxes), then add your current or projected housing payment and your other monthly debts. The calculator will:
- Show your front-end DTI (housing only) and back-end DTI (total counted debts) side by side.
- Compare your ratios against common benchmarks for conventional, FHA, USDA, and custom caps that you choose.
- Estimate a maximum housing payment that would keep your back-end DTI at or below a selected limit.
- Summarize your inputs in a CSV-style breakdown you can export, review later, or share with a housing counselor or trusted advisor.
Use the results as a planning tool, not as a guarantee of approval. A lender will still need to review your full credit profile, documentation, and the specific property you want to buy.
Improve your DTI before you apply
If your current DTI is higher than you would like, you have two broad levers to pull: lower your required monthly debt payments and increase your stable, documentable income. Often, small improvements on both sides are easier to achieve than a dramatic change on just one side.
- Reduce recurring debt payments:
Paying down high-rate revolving balances, refinancing expensive loans, or consolidating some debts into a lower-rate installment loan can lower your minimum payments. Just make sure the change genuinely reduces your total costs and does not tempt you to run balances back up. - Avoid new debts before applying:
Opening a new auto loan, large personal loan, or additional credit card right before you apply for a mortgage can push your DTI higher and make qualifying harder. - Increase verifiable income where possible:
Extra shifts, a side job, or a spouse or partner joining the application can improve the income side of the equation, as long as the income is documented and meets the program’s stability requirements. - Right-size your housing payment:
Use the calculator to test different housing payments and see how they affect your DTI. Sometimes choosing a slightly less expensive home or putting more money down can move your ratio into a more comfortable zone.
No single number guarantees success, but understanding your DTI and taking proactive steps to improve it can make you a stronger mortgage applicant and reduce stress once you become a homeowner.
Frequently Asked Questions (FAQs)
Does my debt to income ratio affect my credit score?
Not directly. Credit scoring models do not use your DTI ratio itself. Instead, they focus on your payment history, credit utilization on revolving accounts, length of credit history, account mix, and recent applications. However, a high DTI often goes hand in hand with higher credit card balances, which can hurt your score if your utilization is high.
What DTI do I need to qualify for a mortgage?
Many lenders prefer to see your back-end DTI at or below the mid-30% range, but conforming loans and some government-backed programs can approve higher ratios when the rest of the file is strong. It is common to see approvals in the low-to-mid 40% range and, in some cases, up to about 45–50% for conventional loans under certain automated underwriting systems. Always check with your lender, because individual guidelines and overlays vary.
Should I include rent when calculating DTI for a future home purchase?
For a new mortgage application, lenders focus on your projected housing payment for the property you want to buy, not your current rent. However, when you are planning on your own, it can still be useful to compare your current rent-based DTI with a scenario that uses an estimated mortgage payment so you can see how your budget might change.
Can I qualify with a high DTI if I have strong compensating factors?
Sometimes. Lenders may be more comfortable with a higher DTI when you have strong compensating factors such as excellent credit scores, a larger down payment, substantial cash reserves, a stable employment history, or a lower-risk property type. These factors do not erase risk, but they can help offset a higher ratio in some underwriting systems.
Is a lower DTI always better?
From a risk perspective, a lower DTI usually means more breathing room in your budget, which is good. But there can be a trade-off: aggressively paying off low-rate debt right before a home purchase might drain your savings and leave you with a smaller down payment or thinner cash cushion. Aim for a healthy balance between manageable monthly payments and adequate reserves.
Sources
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Consumer Financial Protection Bureau (CFPB) – What is a debt-to-income ratio?
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CFPB – Qualified Mortgage definition and General QM rule
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Fannie Mae Selling Guide – B3-6-02: Debt-to-Income Ratios
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Fannie Mae Selling Guide – B3-6-05: Monthly Debt Obligations
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U.S. Department of Housing and Urban Development (HUD) – Housing Counselor Training, Module 2.1 (front-end/back-end ratios)
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USDA – HB-1-3555, Chapter 11: Ratio Analysis for Guaranteed Loans
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U.S. Department of Veterans Affairs – VA Lender’s Handbook (residual income and DTI guidance)
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Wells Fargo – Understanding debt-to-income ratios and what your number means