Debt-to-Income Calculator
Calculate your DTI ratio and see how lenders view your debt level.
Debt-to-Income Ratio
36.7%
Fair -- May qualify for some loans
What Lenders Actually Look For
Mortgage lenders use two DTI ratios:
Front-end ratio: housing costs (mortgage, taxes, insurance) as a percentage of gross income. Most conventional loans want this below 28%.
Back-end ratio: all monthly debt payments as a percentage of gross income. The standard threshold is 43% for conventional loans, though some lenders go up to 50% for FHA loans with compensating factors (large down payment, high credit score).
For the best mortgage rates and approval odds, target below 36% total DTI. The 28/36 rule is the classic guideline: keep housing under 28%, total debt under 36%.
How to Lower Your DTI
There are only two levers: reduce monthly debt payments or increase monthly income.
Reducing debt: Paying off a car loan or credit card before applying for a mortgage can meaningfully lower your DTI. Use the loan calculator to model what an extra payment per month would do to your payoff timeline.
Increasing income: A second income stream, raise, or new job with higher pay directly improves your DTI. Lenders typically want to see 2+ years of consistent income in the same field for new employment.
What won't lower DTI: Making extra payments on a mortgage that's already included in your debt calculation. You'd need to pay it off entirely to remove it from the back-end ratio.
Free Debt-to-Income Calculator
Your debt-to-income (DTI) ratio is one of the most important numbers lenders use to evaluate your ability to repay a loan. It's calculated simply: DTI = (Total Monthly Debt Payments / Gross Monthly Income) × 100. A lower DTI means more of your income is available for new loan payments, making you a lower-risk borrower.
Add all your monthly debt obligations — mortgage/rent, car payments, student loans, credit card minimums, personal loans, and any other recurring debt payments. Divide by your gross (pre-tax) monthly income to get your DTI percentage.
What Lenders Look For
Most mortgage lenders prefer a DTI below 36%, with no more than 28% going to housing costs (the "front-end" ratio). FHA loans may accept DTI up to 43–50% with compensating factors. For other loans, under 36% is generally considered good, 37–43% is acceptable, and above 43% may make qualification difficult. Reducing your DTI before applying for a major loan can improve your chances and potentially qualify you for better interest rates.
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