Debt-to-Income (DTI) Ratio Calculator (USD)
See front-end & back-end DTI in one clean summary
DTI calculator: quick FAQs
What’s the difference between front-end and back-end DTI?
Front-end DTI looks only at housing (rent or mortgage plus required HOA/tax/insurance). Back-end DTI includes housing plus all other required monthly debts, such as auto, student loans, cards, and support.
Should I use gross or net income?
Use gross monthly income in USD before tax and deductions. Lenders and underwriting systems generally base DTI on gross, not take-home pay.
What DTI ranges do lenders usually like?
Many conventional guidelines reference around 28% for front-end and 36% for back-end as comfortable. Some programs allow higher back-end ratios (often into the low 40s) with strong compensating factors.
Do credit card and loan balances matter here?
For DTI, what matters is the required minimum monthly payment in USD, not the total balance. Paying down revolving debt to lower minimums can immediately improve your DTI.
Is this an approval decision?
No. This is an educational estimate based on your inputs. Actual approvals depend on full underwriting, including credit, assets, property, documentation, and program rules.
How to read your DTI and use it before you apply
1. One box, two ratios
The summary box mirrors what many lenders scan first: your front-end DTI and back-end DTI, side by side, using the same USD income and payment set. Front-end asks how heavy the housing payment is by itself. Back-end shows the picture once you layer in cars, loans, cards, and support.
2. Use verifiable income only
Enter income you can document with pay stubs, W-2/1099s, or tax returns. If you add other income, think like an underwriter: recurring, supported by leases, award letters, or a clear paper trail. For debts, use the required minimums from statements or your credit report. Rounding down to “keep it simple” makes the output prettier than your real file and invites surprises.
3. Why front-end vs back-end matters
Classic 28/36 guidance suggests keeping housing at or under ~28% of gross and total debts near or under ~36%. Modern automated underwriting is more flexible, but those bands are still a useful baseline. A low front-end with a slightly stretched back-end usually points at non-housing debts as the lever to pull, which is easier to adjust than undoing a too-large mortgage or lease.
4. Small changes, visible impact
Because DTI is driven by payments, not balances, targeted tweaks move the needle fast. Paying down one credit card so its minimum drops by $30–$50, choosing a car with a slightly lower payment, or consolidating a few loans into one structured plan can pull a borderline back-end ratio into a friendlier range without changing your entire lifestyle.
5. Avoid the usual mistakes
Common errors: mixing net income with gross, forgetting support obligations, ignoring “temporary” installment or BNPL plans that still show on your report, or assuming a teaser loan payment will last forever. For paused or low-payment student loans, many lenders plug in a calculated amount based on the balance. When in doubt, model slightly higher payments in this tool so the real underwriting outcome skews positive, not negative.
6. Turn your DTI into a planning tool
DTI is one slice of your file, but it is a loud one. A higher ratio can be offset by strong credit history, reserves, and stable employment. A very low ratio with weak credit or no savings is not a free pass. Use your results as a checklist: if you’re above common comfort bands, trim payments or document income better before you apply; if you’re well below, you’ve built in margin — that’s both buying power and resilience against rate changes or income bumps.
DTI formula snapshot (USD)
1. Total gross income = monthly gross income + other verifiable income.
2. Housing total = rent or mortgage + HOA + any separate tax/insurance entered.
3. Other debts total = auto + student + credit card minimums + alimony/child support + other fixed debts.
4. Front-end DTI = Housing total ÷ Total gross income.
5. Back-end DTI = (Housing total + Other debts total) ÷ Total gross income.
Percentages are guideline outputs only. Actual lender and program limits vary and can change.