Debt-to-Income Ratio Calculator
Calculate your debt-to-income (DTI) ratio — the key metric lenders use to approve mortgages and other consumer loans.
How to use the Debt-to-Income Ratio Calculator
- Enter your inputs into the Debt-to-Income Ratio Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The DTI formula
Front-end DTI = Housing cost / Gross monthly income · · · Back-end DTI = All debt payments / Gross monthly income
Lenders look at both DTIs. Front-end measures housing burden alone; back-end captures total debt load. Conforming mortgages typically allow up to 43% back-end (sometimes 50% with strong compensating factors).
Worked example
Gross monthly income $8,000. Proposed mortgage payment (PITI) $2,000; car loan $400; student loans $300; credit cards $150. Front-end DTI: 25%. Back-end DTI: (2,000 + 400 + 300 + 150) / 8,000 = 35.6%. Both pass standard 28/43 thresholds.
Frequently asked questions
Should I use gross or net income?
Lenders use gross (pre-tax) income for DTI calculations. From a personal budgeting standpoint, basing DTI on net income gives a more conservative and realistic picture.
Does rent count toward DTI?
When you're applying for a mortgage, your current rent does not — the proposed new housing payment replaces it. For other loans, the lender will typically count current rent.
How can I lower my DTI?
Pay down high-balance debts (especially credit cards), pay off small loans entirely (auto, personal), avoid taking on new debt before applying, and consider income from all sources (alimony, side work) if documentable.