Debt-to-Income Ratio Calculator
Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward debt payments. Lenders use DTI to evaluate whether you can afford additional debt. The formula is DTI = Monthly Debt Payments / Gross Monthly Income * 100. The CFPB's Qualified Mortgage rule sets a maximum back-end DTI of 43% for most borrowers. Enter your monthly income and all monthly debt payments below to see your current DTI and whether you are likely to qualify for additional credit.
DTI formula
DTI = Monthly Debt Payments / Gross Monthly Income * 100
Front-end DTI = housing payment / income. Back-end DTI = all monthly debt payments / income. CFPB Qualified Mortgage (QM) threshold: back-end DTI at or below 43%.
How lenders use DTI
Lenders look at both front-end and back-end DTI. The front-end ratio (housing ratio) measures affordability of the specific housing payment: most conventional loans prefer below 28%. The back-end ratio includes all recurring debt obligations: conventional loans prefer below 36%, FHA allows up to 50% with compensating factors, and the CFPB's QM rule sets a general maximum of 43%. Meeting these thresholds does not guarantee approval; lenders also consider credit score, assets, employment history, and LTV ratio.
Frequently asked questions
What is a debt-to-income (DTI) ratio?
DTI is your total monthly debt payments divided by your gross monthly income, expressed as a percentage. It is one of the primary metrics lenders use to assess your ability to take on additional debt.
What DTI do lenders require?
For qualified mortgages (QM), the CFPB standard is a back-end DTI of 43% or less. Many conventional lenders prefer 36% or less. FHA loans allow up to 50% DTI with compensating factors. Personal loan lenders vary, but below 40% is generally preferred.
What is front-end versus back-end DTI?
Front-end DTI (housing ratio) is just your proposed housing payment (mortgage PITI) divided by gross income. Back-end DTI includes all monthly debt payments: housing plus car loans, student loans, credit card minimums, and other obligations.
What counts as monthly debt payments?
Monthly debt payments include: minimum credit card payments, mortgage or rent, car loans, student loan payments, personal loan payments, child support, and alimony. Do not include utilities, groceries, insurance, or subscriptions.
How can I improve my DTI?
You can lower your DTI by paying off debts (reducing the numerator) or increasing income (increasing the denominator). Paying off a small balance in full is often more effective at lowering DTI than reducing payments on a large balance.
Official sources
- CFPB: What is a debt-to-income ratio?
- CFPB Qualified Mortgage Rule (12 CFR 1026.43): Regulation Z Section 43.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.