Free tool
Free Debt-to-Income Ratio Calculator
Calculate your debt-to-income (DTI) ratio to see how lenders evaluate your finances. Enter your monthly debts and gross income to get your front-end and back-end DTI ratios, check qualification thresholds, and get actionable tips to improve your ratio.
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Calculator inputs
Enter your monthly debts and income
Add each monthly debt payment below. Mark housing costs so the calculator can separate your front-end DTI.
Car payment
Student loan
Credit card minimum
Gross income
This DTI calculator uses your gross (pre-tax) income. Lenders typically evaluate DTI against gross income, not take-home pay.
Lender guidelines
What lenders look for in DTI ratios
These are general guidelines. Each lender sets its own DTI limits based on loan type, credit score, and other factors.
Excellent
Under 20%
Easily qualifies for most loans and mortgages.
Good
20-35%
Qualifies for most mortgages and personal loans.
Fair
36-43%
May qualify for some mortgages. FHA loans allow up to 43%.
Your current range
Poor
44-50%
Limited options. Consider reducing debt before applying.
Very high
50%+
Unlikely to qualify. Focus on paying down debt first.
How to use this calculator
Calculate your DTI in three steps
This free DTI calculator works with any combination of monthly debts and uses your gross income for accurate results.
Enter your monthly debts
List each recurring monthly debt payment including mortgage or rent, car loans, student loans, credit cards, and any other monthly obligations.
Add your gross monthly income
Enter your total monthly income before taxes and deductions. You can enter an annual salary and the calculator will convert it automatically.
Review your DTI ratio
See your front-end and back-end DTI ratios, check qualification thresholds for different loan types, and get personalized tips to improve your ratio.
Actionable advice
Tips to improve your DTI ratio
Your back-end DTI is 39.1%. Here are strategies to lower it.
Pay off smallest debts first
Eliminating a small balance entirely removes that payment from your DTI. Focus on debts you can pay off quickly to see immediate improvement.
Increase your income
A raise, side job, or freelance work increases gross income and lowers your DTI percentage even without reducing debt.
Avoid taking on new debt
Every new loan or credit card balance adds to your monthly obligations. Pause new borrowing until your DTI reaches your target range.
Refinance to lower payments
Refinancing a loan to a lower rate or longer term can reduce your monthly payment. Be sure the total cost still makes sense for your situation.
To move from "Fair" to "Good," reduce your total monthly debt payments by $225.00 (bringing it under $1,925.00 per month).
FAQ
Common DTI ratio questions
Quick answers about debt-to-income ratios, how lenders use them, and what you can do to improve yours.
What is a debt-to-income ratio?
A debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward monthly debt payments. Lenders use two versions: the front-end ratio (housing costs only divided by income) and the back-end ratio (all monthly debts divided by income). A lower DTI signals less financial strain and makes you a more attractive borrower.
What is a good debt-to-income ratio?
Most lenders prefer a back-end DTI below 36%, though FHA mortgages may accept borrowers with a DTI up to 43%. A DTI below 20% is considered excellent and gives you the widest range of lending options. Conventional mortgage guidelines typically cap the front-end ratio at 28% and back-end at 36%.
What debts are included in DTI?
DTI includes recurring monthly debt obligations such as mortgage or rent, car payments, student loans, credit card minimum payments, personal loans, child support, and alimony. It does not include expenses like utilities, insurance premiums, groceries, phone bills, or streaming subscriptions.
How do I lower my debt-to-income ratio?
You can lower your DTI by paying off debts (start with the smallest balances for quick wins), increasing your gross income through raises or side work, avoiding new debt, refinancing existing loans to reduce monthly payments, or consolidating multiple debts into a single lower-payment loan.
Does DTI affect my credit score?
DTI itself is not a factor in credit score calculations. However, high credit utilization (the percentage of available credit you are using), which often accompanies a high DTI, does affect your credit score. Lenders evaluate DTI separately from your credit score when deciding whether to approve a loan.
What is the difference between front-end and back-end DTI?
Front-end DTI includes only housing-related costs such as mortgage or rent payments, property taxes, and homeowner's insurance. Back-end DTI includes all monthly debt obligations: housing costs plus car payments, student loans, credit card minimums, and any other recurring debts. Most lenders review both ratios when evaluating a loan application.
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