🏦 FINANCIAL HEALTH

Debt-to-Income (DTI) Ratio Calculator

Calculate your front-end and back-end DTI ratios instantly. See how lenders view your borrowing power and get actionable steps to improve your ratio.

🟢 Healthy Below 35%🟡 Moderate 35–43%🔴 High Risk Above 43%

Back-End DTI

28.3%

All debts / income

Front-End DTI

16.7%

Housing / income

Monthly Income

$6,000

Gross monthly

Total Monthly Debt

$1,700

All obligations

Monthly Income (Gross)

$6,000

Monthly Debt Payments

$1,700

HOUSING COSTS (FRONT-END)

OTHER DEBTS (BACK-END)

Results update live as you type.

Your DTI Ratio

28.3%
✓ Healthy DTI

Front-End DTI

16.7%

✓ Within 28% limit

Back-End DTI

28.3%

✓ Within 36% limit

Lender Qualification Thresholds

Loan TypeFront-EndBack-EndQualify?
Conventional28%36%✅ Yes
FHA Loan31%43%✅ Yes
VA Loan41%41%✅ Yes
USDA Loan29%41%✅ Yes
Jumbo Loan28%43%✅ Yes

Income vs Debt Breakdown

$0k$1k$3k$4k$5kSalaryOther IncomeHousingCredit CardsStudentAutoOther Debt

What-If Scenarios

  • Pay off credit card ($200/mo)25.0% 3.3%
  • Pay off auto loan ($200/mo)25.0% 3.3%
  • +$500/mo income raise26.2% 2.2%
  • Add $1,500 mortgage payment53.3% 25.0%

Understanding Your DTI Ratio

Your Debt-to-Income ratio is the percentage of gross monthly income that goes toward recurring debt payments. Lenders use it as a key metric to assess borrowing risk. Our DTI calculator computes both front-end (housing-only) and back-end (all debts) ratios instantly. Use this alongside our house affordability calculator, mortgage calculator, and rent calculator for a complete financial picture.

DTI Formula

Back-End DTI = Total Monthly Debts / Gross Monthly Income × 100
Front-End DTI = Housing Costs / Gross Monthly Income × 100

Always use gross (pre-tax) income — lenders use pre-tax figures. Using net income will make your DTI look falsely low.

Lender DTI Thresholds

  • Conventional (28/36): front-end ≤28%, back-end ≤36%.
  • FHA (31/43): more flexible — allows up to 45% back-end with compensating factors.
  • VA Loans: back-end ≤41% typically, no strict front-end cap.
  • USDA: back-end ≤41%, some flexibility with compensating factors.
  • Jumbo Loans: often stricter — back-end ≤43% or less.

How to Lower Your DTI

  • Pay off smallest debts first: eliminates a full monthly minimum, not just a balance.
  • Increase income: a raise, side hustle, or freelance work all count toward gross income.
  • Refinance high-rate debt: lower payments without adding new principal — see our Refinance Calculator.
  • Avoid new credit: before major loan applications, hold off opening new accounts.
  • Larger down payment: reduces mortgage size and front-end DTI together — try the Down Payment Calculator.

Common DTI Mistakes

  • Using net (take-home) income instead of gross.
  • Forgetting co-signed loans — they count against your DTI too.
  • Omitting minimum credit card payments even if you pay in full each month.
  • Assuming low DTI = approval guaranteed — credit score matters too.
  • Borrowing at the maximum approved amount leaves no cushion.

— FAQ

Frequently Asked Questions