Debt to Income (DTI) Ratio Calculator
Work out your debt to income ratio for a mortgage. Enter your gross monthly income, your housing payment and your other monthly debts to see both the front-end and back-end DTI that lenders look at.
How to calculate debt to income ratio
- Enter your gross monthly income before taxes.
- Enter your monthly housing payment (mortgage, taxes, insurance and HOA).
- Add other monthly debts to see your front-end and back-end DTI.
Examples
8,000 income, 2,000 housing, 800 other debt
Gross monthly income 8,000, housing 2,000, other debt 800
Front-end 25 percent, back-end 35 percent
Frequently asked questions
What is the debt to income ratio?
Debt to income ratio (DTI) is your monthly debt payments as a percentage of your gross monthly income. Lenders use it to judge how much of your income is already committed before approving a mortgage.
What is the difference between front-end and back-end DTI?
Front-end DTI counts only your housing payment against income. Back-end DTI adds all other monthly debts such as car loans, student loans and credit cards. Back-end is the broader, more important figure for most lenders.
How is DTI calculated?
Front-end DTI is the housing payment divided by gross monthly income, times 100. Back-end DTI adds other debts to the housing payment first. With 8,000 income, 2,000 housing and 800 other debt, that is 25 and 35 percent.
What DTI do mortgage lenders want?
Guidelines vary, but many lenders prefer a front-end DTI up to about 28 percent and a back-end DTI up to about 36 percent. Some loan programs allow a back-end DTI as high as 43 to 50 percent with strong credit.
What debts count toward DTI?
Include recurring monthly obligations: the housing payment, car loans, student loans, minimum credit card payments, personal loans and child support. Everyday bills such as utilities, groceries and insurance are usually left out.
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