See your DTI the way mortgage lenders calculate it
💡 Why This Matters Your DTI ratio is one of the biggest numbers lenders look at when deciding whether to approve you for a mortgage, auto loan, or other major credit — and unlike your credit score, it's something you can calculate yourself right now.
DTI is one of the few underwriting numbers you fully control before applying — paying down even one credit card balance or increasing your income can shift you into a better qualifying tier before a lender ever pulls your file.
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Back-end DTI is your total monthly debt payments (housing plus everything else) divided by your gross monthly income, shown as a percentage. Front-end DTI is just your housing payment divided by gross monthly income. Lenders calculate both, but back-end DTI is generally the number that determines loan approval.
Most conventional lenders consider 36% or below a healthy back-end DTI, 37-43% borderline but still workable for many loan programs, and above 43% increasingly difficult to qualify with — though some programs (like certain FHA loans) allow higher ratios in specific cases.
This calculator uses gross (pre-tax) income, which is the industry standard for DTI, but it's worth remembering that your actual take-home pay will be lower. It also doesn't account for compensating factors lenders sometimes weigh, like a large down payment or strong credit history, which can offset a higher DTI.
If your DTI is higher than you'd like, the two levers are increasing income or reducing monthly debt — paying off a car loan or credit card balance before applying for a mortgage can meaningfully shift your ratio. Recalculate here any time your income or debts change.
Example: Say your gross monthly income is $6,000, your housing payment is $1,500, and you have $500 in other monthly debts (car loan, credit cards, etc). Total monthly debt is $2,000, so back-end DTI = 2,000 ÷ 6,000 = 33.3%. Front-end DTI (housing only) = 1,500 ÷ 6,000 = 25%. Both fall comfortably in the "healthy" range most lenders look for.
Most lenders consider 36% or below healthy, 37-43% borderline (still qualifies for many loans but with less flexibility), and above 43% harder to get approved for a mortgage. Some loan programs allow up to 50% in specific circumstances.
Recurring monthly obligations: rent or mortgage, car loans, student loans, minimum credit card payments, personal loans, and child support or alimony. It does not include everyday expenses like groceries, utilities, or insurance premiums.
Front-end DTI only counts your housing payment against your income. Back-end DTI counts all your monthly debt payments, including housing. Mortgage lenders typically look at both, with back-end DTI being the more important number for qualification.