Debt-to-Income Ratio Calculator

What Is Debt-to-Income Ratio?

Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments. It is the primary metric lenders use to assess whether you can afford to take on additional debt. A lower DTI means more financial flexibility and better loan terms.

The DTI Formula

DTI Thresholds by Loan Type

Lenders apply different DTI limits depending on the loan:

• Excellent (below 20%): Best rates, easiest approvals across all lenders
• Good (20–35%): Qualifies for most loans at competitive rates
• Fair (36–43%): May qualify for conventional mortgages; limited options
• High (44–50%): FHA may approve; most conventional lenders will decline
• Over 50%: Most lenders will not extend new credit

Front-End vs. Back-End DTI

Mortgage lenders use two DTI numbers: front-end (housing costs ÷ income) and back-end (all debts ÷ income). The back-end DTI is the number that matters most. For conventional loans, lenders want front-end below 28% and back-end below 43%.