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Debt-to-Income (DTI) Ratio Calculator

Measure your monthly debt obligations against your gross monthly income. Estimate your front-end and back-end ratios to evaluate your mortgage approval likelihood.

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Housing Costs (Monthly)

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Other Debts (Monthly)

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Front-End DTI (Housing)
29.23%
Back-End DTI (Total Debt)
42.31%
Total Monthly Debt
$2,750.00

good Risk Level

Limit threshold: 36%

Good. Your debt ratio is acceptable (37% - 43%). You will qualify for standard conventional loans, though choices may be slightly narrower.

With a gross monthly income of $6,500, your housing obligations total $1,900.00 (a front-end DTI of 29.23%). Your total monthly debt obligations amount to $2,750.00, which produces a back-end DTI of 42.31%.

Income Allocation Split

Back-End DTI42.31%

Understanding the 28/36 Underwriting Rule

Lenders evaluate loan eligibility using two ratios:

  • Front-End DTI (Housing Ratio): Your monthly housing outlays (Principal, Interest, Property Taxes, Insurance, and HOA fees) divided by your gross monthly income. Target is 28% or less.
  • Back-End DTI (Total Debt Ratio): Your monthly housing outlays plus all other recurring loan minimums divided by your gross monthly income. Target is 36% or less.

Frequently asked questions

What is a good Debt-to-Income (DTI) ratio?

Most lenders prefer a back-end DTI ratio of 36% or less. Conventional underwriting guidelines typically specify a front-end (housing) limit of 28% and a back-end (total debt) limit of 36%—often called the 28/36 rule. However, some loans (such as FHA or VA) allow DTIs up to 43% or even 50% with compensating factors.

What is the difference between front-end and back-end DTI?

Front-end DTI only measures your housing costs (mortgage, property taxes, insurance, and HOA fees) relative to your gross income. Back-end DTI measures your housing costs plus all other recurring monthly debts (credit cards, auto loans, student loans, personal loans, and alimony/child support).

How can I lower my DTI ratio?

You can lower your DTI ratio by either increasing your gross monthly income (e.g. wages, rental income, or side-hustles) or paying off recurring monthly debts (like paying off a car loan or consolidating credit cards to reduce minimum monthly payments).