Affordability & Rates
Debt-to-Income Calculator
Debt-to-income ratio
Healthy
Most lenders look for a DTI of 43% or below. 36% or under is ideal and unlocks the best rates.
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Get my personalized quoteAbout the debt-to-income calculator
A debt-to-income calculator finds the percentage of your gross monthly income that goes toward debt payments — the single most important number lenders use to decide whether you qualify for a mortgage. Enter your income and monthly debts to see both your front-end ratio (housing only) and back-end ratio (all debts).
DTI matters because lenders cap how much of your income can be committed to debt. Conventional loans generally target about 28% front-end (housing) and 36% back-end (total debt), with many lenders allowing up to roughly 45% to 50% when you have strong compensating factors. FHA commonly uses a 31% / 43% guideline but can go higher — often around 47% / 50% — with compensating factors. The 43% figure is a common qualified-mortgage threshold, not a universal hard cap. Knowing your ratio before applying tells you whether you're in qualifying range and how much room you have for a mortgage payment.
Use the result to plan: if your DTI is high, paying off a credit card or car loan can quickly improve it and boost your borrowing power. A practical tip — lenders count the minimum required payment on revolving debts, so even partially paying down balances and lowering those minimums can help your ratio.
Frequently asked questions
- What is a good debt-to-income ratio for a mortgage?
- Conventional loans generally aim for about 28% front-end and 36% back-end, though many lenders allow up to roughly 45% to 50% with compensating factors. FHA commonly uses 31% / 43% and can stretch to around 47% / 50%. The 43% figure is a common qualified-mortgage guideline, not a hard cap — but lower is always better.
- How is debt-to-income ratio calculated?
- Divide your total monthly debt payments by your gross monthly income, then multiply by 100. Lenders look at the front-end ratio (housing costs only) and the back-end ratio (all monthly debt payments including the new mortgage).
- What debts count toward DTI?
- Lenders include the proposed mortgage payment, car loans, student loans, credit card minimums, personal loans and other recurring obligations. Everyday expenses like utilities, groceries and insurance generally aren't counted.
- How can I lower my DTI to qualify?
- Pay down or pay off debts to reduce monthly obligations, avoid taking on new loans before applying, and increase your income if possible. Each lowers the ratio and improves your chances of mortgage approval.
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