Debt-to-Income Calculator
Compute the DTI ratio lenders use to size your borrowing power.
Quick answer
Your debt-to-income (DTI) ratio is total monthly debt payments divided by gross monthly income, as a percentage. Lenders generally prefer DTI under 36% and often cap mortgage approval near 43%; a lower DTI means more borrowing room and better rates.
Back-end DTI
32.0%
Strong
Front-end (housing) DTI
24.0%
Room to 43%
$825
The ratio lenders live by
DTI divides monthly debt payments by gross monthly income. Conventional mortgages like back-end DTI under 36%, allow up to 43–50% with strong compensating factors; the housing-only front-end target is 28%. It's the single biggest lever on how much house you qualify for.
Improving it
DTI improves by retiring payments, not balances — paying a car loan down doesn't help until it's gone, which is why lenders suggest clearing small loans entirely before applying. Income raises help immediately; new credit lines hurt immediately.
Frequently asked questions
- How does the Debt-to-Income Calculator work?
- Your debt-to-income (DTI) ratio is total monthly debt payments divided by gross monthly income, as a percentage. Lenders generally prefer DTI under 36% and often cap mortgage approval near 43%; a lower DTI means more borrowing room and better rates.
- Is the Debt-to-Income Calculator free to use?
- Yes. The Debt-to-Income Calculator is completely free, runs entirely in your browser, and requires no account or sign-up. Your inputs never leave your device.
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