FreeCalculators

Debt-to-Income Ratio Calculator

Calculate your DTI ratio to assess your loan eligibility and improve your financial health.

Personal Finance · Reviewed by FreeCalculators Editorial · Updated 2026-09-01

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How it works

Your debt-to-income ratio (DTI) is what lenders use to decide if you can handle additional debt. It equals total monthly debt payments divided by gross monthly income, expressed as a percentage. There are two types: front-end DTI (housing costs only, should be below 28%) and back-end DTI (all debt, should be below 36%). Lenders want back-end DTI below 43% for conventional mortgages, though FHA allows up to 50% with compensating factors. A high DTI is the number-one reason mortgage applications get denied. The calculator sums all your monthly debt obligations, divides by gross income, and compares against lender thresholds. It also shows the maximum housing payment you can afford under the 28% front-end rule. Every field in this calculator exists for a reason. Enter Gross monthly income, Monthly mortgage / rent, Monthly car payment, Monthly student loan, Monthly credit card payment, All inputs stay in your browser. Adjust one field at a time to see which lever moves the answer most — the formula on this page lets you verify every step against the defaults shown in the worked example.

Formula


                DTI = (Total monthly debt ÷ Gross monthly income) × 100

Tips

  • Below 20% is excellent. Below 36% gets the best mortgage rates.
  • Above 43% makes conventional mortgage qualification difficult.
  • Pay off one small debt entirely to get a quick DTI improvement.
  • Do not take on new debt before applying for a mortgage.

Frequently asked questions

What DTI do I need for a mortgage?
Conventional loans require DTI below 43%, ideally below 36%. FHA allows up to 50% with compensating factors. VA loans prefer below 41%.
How do I lower my DTI?
Pay down debt (especially high-balance accounts), increase income, or both. Avoid taking on new debt before applying for a mortgage.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.