How to use this calculator
- Enter your gross income. Use your annual salary before taxes, plus any other regular monthly income such as rental income or alimony received. Applying with someone? Include both incomes and both sets of debts.
- Enter your housing payment. Renters enter monthly rent. Homeowners — or anyone applying for a mortgage — enter the full PITI payment: principal, interest, property taxes, homeowners insurance, mortgage insurance and HOA dues.
- Enter your monthly debt payments. Use the minimum required payments that appear on your credit report, not what you choose to pay.
- Pick a target. The results show your ratios, how common loan programs view them, and the largest housing payment that keeps you at your target DTI.
What is a debt-to-income ratio?
Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes to required debt payments. Lenders use it to judge whether you can afford a new loan. There are two versions:
- Front-end DTI (housing ratio) = housing payment ÷ gross monthly income.
- Back-end DTI (total ratio) = all monthly debt payments, including housing ÷ gross monthly income.
Back-end DTI = (housing + car + student + card minimums + other loans + support) ÷ gross monthly income × 100
When people say “DTI” without qualification, they almost always mean the back-end ratio — and it is the one that decides most approvals.
DTI limits by loan type
Limits vary by program, lender and the strength of the rest of your application (credit score, down payment, cash reserves). These are the typical benchmarks:
| Loan type | Front-end | Back-end | Notes |
|---|---|---|---|
| Conventional (Fannie Mae, automated) | — | Up to 50% | Desktop Underwriter can approve up to 50% with strong factors. |
| Conventional (manual underwriting) | — | 36%, up to 45% | 45% requires credit score and reserve requirements. |
| FHA | 31% | 43% | Can go higher with compensating factors or automated approval. |
| VA | — | 41% guideline | Higher ratios allowed with enough residual income. |
| USDA | 29% | 41% | Exceptions possible through automated underwriting. |
| HELOC / home equity loan | — | Typically 43%–50% | Lender-specific; includes the new equity payment. |
You may still see “43%” described as the legal maximum. That comes from the original Qualified Mortgage (QM) rule, but the CFPB replaced the 43% cap with a price-based test in 2021. Many lenders still use 43% as an internal benchmark.
What counts (and doesn’t) in DTI
| Included | Usually not included |
|---|---|
| Rent or mortgage payment (PITI + HOA) | Utilities, phone and internet |
| Car loan and lease payments | Groceries, gas and other living costs |
| Student loan payments (even if deferred) | Health, car and life insurance premiums |
| Credit card minimum payments | Subscriptions and streaming services |
| Personal loans, BNPL loans on your report | Income taxes and payroll deductions |
| Child support and alimony you pay | Medical bills not in collections or on a payment plan |
Worked example
Jordan earns $90,000 a year, or $7,500 a month before taxes. Rent is $2,100, the car payment is $450, student loans are $300 and credit card minimums total $150.
- Front-end DTI: $2,100 ÷ $7,500 = 28% — right at the classic 28% guideline.
- Back-end DTI: ($2,100 + $450 + $300 + $150) ÷ $7,500 = $3,000 ÷ $7,500 = 40%.
At 40%, Jordan qualifies for most conventional and FHA loans but sits above the 36% comfort zone. To get back to 36%, total debts would need to fall to $2,700 — a $300 cut — or the housing payment could be at most $1,800 with the other debts unchanged. Paying off the car loan early would drop the ratio to 34%.
How to lower your DTI
- Pay off small balances completely. Eliminating a debt removes its whole payment from the ratio. Our debt payoff calculator shows which debts you can clear fastest.
- Refinance or consolidate to lower payments. A longer term or lower rate cuts the monthly payment lenders count — see the debt consolidation calculator.
- Pay credit cards down. Minimum payments fall as balances fall, and your credit score often rises too.
- Add documented income. A co-borrower, a raise or two years of documented side income increases the denominator.
- Avoid new debt before applying. Hold off on car purchases or financing furniture until after closing.
- Look at a cheaper home or bigger down payment. A smaller loan means a lower PITI and a lower front-end and back-end ratio.
Frequently asked questions
What is a good debt-to-income ratio?
Most lenders view a back-end DTI of 36% or less as healthy, with no more than 28% going to housing. Many mortgage programs accept up to 43%, and conventional loans approved through Fannie Mae’s automated underwriting can go up to 50%. Below 20% is excellent.
Is DTI calculated on gross or net income?
Gross income — your pay before taxes, retirement contributions and other deductions. That’s why a 43% DTI can feel much tighter than it sounds: it is 43% of your pre-tax income.
Does DTI affect my credit score?
No. Credit bureaus don’t know your income, so DTI is not part of FICO or VantageScore. Lenders calculate it separately when you apply. Your credit utilization, on the other hand, does affect your score.
What DTI do I need for a HELOC or home equity loan?
Most HELOC and home equity lenders want a back-end DTI of 43% or lower, including the new HELOC payment; some go to 50% for strong applicants. Estimate the new payment with our HELOC payment calculator and add it to your housing costs here.
Should I use my current rent or the new mortgage payment?
For a mortgage application, lenders use the proposed payment for the new home — principal, interest, property taxes, homeowners insurance, mortgage insurance and HOA dues (PITI). Your current rent drops out once you move. To check your finances today, use your current housing payment.
How are student loans in deferment counted?
Lenders still count them. Depending on the program, they use the payment on your credit report or repayment plan, or a percentage of the balance when no payment is shown (for example 0.5% of the balance for FHA loans, or 1% for many conventional loans).
Sources
- What is a debt-to-income ratio? — Consumer Financial Protection Bureau
- Selling Guide B3-6-02: Debt-to-Income Ratios — Fannie Mae
- Single Family Housing Policy Handbook 4000.1 — U.S. Department of Housing and Urban Development (FHA)
- Regulation Z §1026.43 — ability-to-repay and qualified mortgage standards — Consumer Financial Protection Bureau