What is a good debt-to-income ratio?

Under 36% back-end is commonly treated as comfortable; many conventional mortgages cap around 43–50% depending on the program and borrower strength.

Do I use gross or net income?

Gross — income before taxes. That is how lenders calculate DTI, which is why a DTI that looks fine can still feel tight on take-home pay.

What counts as debt in DTI?

Recurring minimum payments: housing, auto loans, student loans, credit card minimums, personal loans, child support. Utilities, groceries and insurance not tied to a loan usually don’t count.

How can I lower my DTI?

Pay down balances with high minimum payments, avoid new debt before applying, or increase documented income.

Loans & Debt

Debt-to-Income Ratio Calculator

Lenders compare your monthly debt payments to your gross monthly income. Enter your income before taxes, your housing payment (rent or the full mortgage payment) and your other minimum debt payments such as car loans, student loans and credit cards. You’ll see front-end DTI (housing only), back-end DTI (all debts) and how much more monthly debt would fit under a common 36% guideline.

Next calculationHome Affordability by Salary CalculatorTurn your DTI into an affordable home price.

Estimates only. Verify important figures against your own records before acting on them. See our disclaimer.

How to use the Debt-to-Income Ratio Calculator

Enter the gross monthly income, monthly housing payment and other monthly debt payments.
Read the highlighted result first, then the breakdown below it. Load the worked example to check the math by hand.

What this calculator includes

What you enter

Gross monthly income
Monthly housing payment
Other monthly debt payments

What you get back

Back-end DTI (all debts)
Front-end DTI (housing only)
Total monthly debt payments
Room left at 36% back-end

How this calculation works

DTI expresses monthly debt payments as a share of gross monthly income. Front-end looks at housing alone; back-end includes every recurring debt payment.

Front-end DTI = housing payment ÷ gross monthly income × 100
Back-end DTI = (housing + other debts) ÷ gross monthly income × 100
Room at 36% = income × 0.36 − total debts

What the result means

Back-end DTI is the share of gross income committed to debt payments each month — a key lender screening number, not an approval decision.

Common mistakes and assumptions

Using take-home pay instead of gross income.
Counting balances instead of minimum payments.
Leaving out property tax, insurance or HOA from housing.

Worked example

$6,000 gross monthly income, $1,600 housing and $550 in car and card payments.

1Front-end = 1,600 ÷ 6,000 = 26.67%.
2Back-end = 2,150 ÷ 6,000 = 35.83%.
3Room at 36% = 2,160 − 2,150 = $10 a month.

Frequently asked questions

What is a good debt-to-income ratio?: Under 36% back-end is commonly treated as comfortable; many conventional mortgages cap around 43–50% depending on the program and borrower strength.
Do I use gross or net income?: Gross — income before taxes. That is how lenders calculate DTI, which is why a DTI that looks fine can still feel tight on take-home pay.
What counts as debt in DTI?: Recurring minimum payments: housing, auto loans, student loans, credit card minimums, personal loans, child support. Utilities, groceries and insurance not tied to a loan usually don’t count.
How can I lower my DTI?: Pay down balances with high minimum payments, avoid new debt before applying, or increase documented income.

Disclaimer

This calculator returns estimates based only on the values you enter. It does not account for taxes, financing terms, local regulations, or conditions specific to your operation, and it is not accounting, legal, tax, or investment advice. Confirm any figure that carries real cost before you rely on it.

Calculations run entirely in your browser and the numbers you type are never sent to us or stored. Read how Answerivo calculators are built or report a correction. About Answerivo.