Debt-to-Income Ratio Calculator

Calculate your debt-to-income ratio (DTI) to understand your financial health. See front-end and back-end ratios used by mortgage lenders.

Your DTI Ratio

Debt-to-Income

39.2%

Acceptable

Front-End Ratio

25.0%

Within limit

Gross Income$6,000
Total Monthly Debt$2,350
Disposable Income$3,650

Monthly Income

$
2,00020,000

Housing Payment

$
05,000

Include: Principal, interest, property taxes, homeowner's insurance, HOA fees, PMI

Monthly Debt Payments

$
$
$
$

Include: Personal loans, alimony, child support, medical debt payments

Assessment: Acceptable

Your DTI is acceptable but approaching limits. This is typically the maximum for qualified mortgages. Focus on reducing debt.

Income Allocation

DTI Guidelines

0-20%- Excellent
Maximum financial flexibility
21-35%- Good
Healthy debt level
36-43%- Acceptable
Maximum for most mortgages
44-50%- High
May have trouble qualifying
50%+- Critical
Financial stress likely

Your DTI: 39.2% - Acceptable

The 28/36 Rule

Front-End Ratio (Housing)

25.0%

Target: ≤28% | Yours: ✓ Within target

Back-End Ratio (All Debt)

39.2%

Target: ≤36% | Yours: 3.2% over

Your DTI Ratio

Debt-to-Income

39.2%

Acceptable

Front-End Ratio

25.0%

Within limit

Gross Income$6,000
Total Monthly Debt$2,350
Disposable Income$3,650

Quick Answer

Debt-to-income ratio (DTI) = Total Monthly Debt Payments / Gross Monthly Income × 100. Lenders prefer DTI under 36% for mortgages. Use our calculator at practicalwebtools.com to check your DTI instantly.

Key Facts

  • DTI = Monthly Debt / Gross Monthly Income × 100
  • Front-end DTI: housing costs only (mortgage, taxes, insurance)
  • Back-end DTI: all debt payments including housing
  • Conventional mortgages prefer back-end DTI under 36%
  • FHA allows up to 43% DTI; some programs up to 50%
  • Lower DTI means better loan terms and rates

Frequently Asked Questions

DTI compares your monthly debt payments to gross monthly income. It's expressed as a percentage: (Total Monthly Debt / Gross Monthly Income) × 100. Lenders use DTI to assess your ability to manage payments. Lower is better - under 36% is generally considered healthy.
Front-end DTI (housing ratio) includes only housing costs: mortgage/rent, property taxes, insurance. Lenders typically want this under 28%. Back-end DTI includes ALL debt payments including housing. The 28/36 rule suggests front-end ≤28% and back-end ≤36%.
Conventional mortgages typically require DTI ≤43%. FHA loans may allow up to 50% with compensating factors. VA loans may go to 41%+. However, better rates and terms come with lower DTI. Aim for 36% or less for best options.
Lower debt: pay off accounts (start with highest interest), avoid new debt, refinance at lower rates. Increase income: raise, promotion, side gig, rental income. Note: DTI uses gross income, so pre-tax increases help more than you might expect.
DTI doesn't directly affect credit scores - it's not reported to credit bureaus. However, the factors that increase DTI (high balances, many accounts) do affect credit utilization, which impacts scores. Managing DTI often improves credit naturally.