Debt-to-Income Ratio Calculator

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.