Debt-to-Income Ratio Calculator
Example: Gross monthly income (before taxes): 6000 $ · Monthly housing payment (rent or mortgage): 1400 $ · Other monthly debt payments (car, student, credit cards): 500 $
| Back-end DTI (all debt ÷ income) | 31.67% |
| Front-end DTI (housing ÷ income) | 23.33% |
| Total monthly debt obligations | $1,900 |
| Monthly headroom before 36% limit | $260 |
| Max additional housing you can afford | $260 |
Worked example
On $6,000 gross monthly income, a $1,400 housing payment (front-end DTI = 23%) and $500 in other debt (back-end DTI = 32%) sit below the standard 28/36 thresholds — you look good to most lenders. But there is only $160/month of headroom before hitting 36%. Adding even a $200 car payment would push the back-end DTI to 35.3%, right at the edge. Knowing your headroom before you apply lets you plan, not react.
Frequently asked questions
What DTI do lenders actually require?
Conventional mortgages typically use 28% front-end and 36% back-end as qualifying guidelines, though Fannie Mae and Freddie Mac allow back-end DTI up to 45–50% with compensating factors such as strong credit or large reserves. FHA loans allow back-end DTI up to 57% in some cases. The thresholds vary by lender and loan type.
Does DTI affect my interest rate, or just my approval?
DTI primarily affects approval eligibility. Your interest rate is driven more by credit score, loan-to-value ratio, and loan type. However, a high DTI can push you toward loan programs with less favorable pricing, and some lenders use risk-based pricing that considers DTI as a secondary factor.
What counts as a debt in the back-end DTI?
Lenders include all monthly obligations reported on your credit report: mortgage or rent, auto loans, student loans, minimum credit card payments, personal loans, and child support or alimony. Utilities, insurance, subscriptions, and groceries are not counted.
How can I lower my DTI quickly?
Two levers: increase income (a second job, raise, or rental income counts if it can be documented for two years) or reduce debt (pay down balances to lower minimum payments, or close paid-off installment accounts). Paying off a car loan or a small credit card balance can move DTI meaningfully in a single month.