See your debt the way a lender does.
Your debt-to-income ratio is the first number a lender checks. Enter your gross monthly income and every recurring debt payment to see your back-end and front-end DTI, where you land against the 28/36 rule and the 43% mortgage limit, and how much borrowing room you have left.
Your income
Total income before taxes and deductions. Lenders always use gross, not take-home.
Count only recurring debt: housing, loans, minimum card payments. Leave out groceries, utilities and other living costs, lenders do not include them in DTI.
What your ratio tells a lender
Where you stand against the guidelines
Your DTI vs the 28%, 36% and 43% lines
What makes up your debt
Monthly debt by type
DTI scorecard
How much debt fits at each threshold
At your income, the most total monthly debt you could carry and still land under each lender guideline, and how much room is left after your current debt.
| Guideline | Meaning | Max monthly debt | Room left |
|---|
Debt-to-income, explained
What Is Debt-to-Income Ratio and Why It Matters
Your debt-to-income ratio is the percentage of your gross monthly income that goes toward paying debts. Lenders use DTI as a key measure of your ability to manage monthly payments and repay borrowed money. A DTI below 36% is generally considered favorable, while a ratio above 43% may make it difficult to qualify for most conventional mortgage loans. This single metric plays a major role in loan approval decisions across all types of consumer lending.
Front-End vs Back-End DTI Explained
Front-end DTI measures only your housing-related expenses, including mortgage payment, property taxes, homeowners insurance, and HOA fees, divided by your gross monthly income. Back-end DTI includes all monthly debt obligations such as housing costs plus credit cards, auto loans, student loans, and any other recurring debt payments. Most mortgage lenders prefer a front-end DTI below 28% and a back-end DTI below 36%, though some loan programs allow ratios up to 50%.
How Lenders Use DTI to Approve Loans
Mortgage lenders typically require a back-end DTI of 43% or less for qualified mortgages under federal lending guidelines. FHA loans may allow DTI ratios up to 50% with strong compensating factors like a high credit score or significant cash reserves. For personal loans and auto loans, lenders have their own DTI thresholds but generally prefer borrowers with ratios below 40%. A lower DTI signals to lenders that you have sufficient income to comfortably handle additional debt payments.
How to Lower Your Debt-to-Income Ratio
The fastest way to lower your DTI is to pay down existing debts, starting with the accounts that have the highest monthly minimum payments. Increasing your gross income through a raise, side job, or additional income sources also improves the ratio. Avoid taking on new debt before applying for a major loan, and consider paying off small account balances entirely to eliminate their minimum payments from your DTI calculation.
Common questions
What is a good debt-to-income ratio?
A DTI below 36% is considered good by most lenders. Below 28% is excellent. Between 36%-43% is acceptable for most mortgages. Above 43% makes qualifying for new loans difficult, and above 50% signals serious financial stress.
What is the difference between front-end and back-end DTI?
Front-end DTI includes only housing costs (mortgage/rent, property tax, insurance) divided by income. Back-end DTI includes all monthly debt obligations. Mortgage lenders typically want front-end DTI below 28% and back-end DTI below 36%.
How does DTI affect mortgage approval?
Most conventional mortgages require a back-end DTI of 43% or less. FHA loans may allow up to 50% with compensating factors. A lower DTI not only helps you qualify but may also get you a better interest rate.
How can I lower my debt-to-income ratio?
You can lower DTI by paying down existing debts, increasing your income, avoiding new debt, or refinancing to lower payments. Even paying off a small credit card balance can improve your ratio enough to qualify for a mortgage.
Estimates for planning only. Lenders calculate DTI from documented gross income and the debts on your credit report, and each loan program sets its own limits and compensating factors. Use this as a guide, then confirm the numbers with your lender.