— Loans & Debt
Debt-to-Income Ratio Calculator
Your debt-to-income ratio is the number lenders lean on most. See where you stand against the usual thresholds — and whether a new loan would still qualify.
Back-end DTI
35%
- Qualification
- Comfortable
- Total monthly debt
- $2,800
- Gross monthly income
- $8,000
- Front-end DTI (housing only)
- 22.5%
- Back-end DTI (all debts)
- 35%
- Room under 36% DTI
- $80
— Debt breakdown
| Item | Monthly payment | Share of income |
|---|---|---|
| Housing | $1,800 | 22.5% |
| Car loan | $450 | 5.63% |
| Other loans | $350 | 4.38% |
| Credit cards | $200 | 2.5% |
| Total | $2,800 | 35% |
— Where you stand
Download— How it works
DTI = total monthly debt payments ÷ gross monthly income × 100. Front-end counts housing only; back-end counts every debt.
What your DTI tells a lender
Debt-to-income ratio is simple but powerful: it is your total monthly debt payments divided by your gross monthly income, as a percentage. Lenders use it as a quick read on whether you can comfortably take on more borrowing — a low ratio says your income has room to absorb a new payment, a high one says it is already stretched. It is one of the first numbers a mortgage or loan underwriter looks at, often before your credit score.
Because it is a snapshot, there is no time dimension — no schedule, no interest to project. What matters is the balance between what you owe each month and what you earn. This calculator builds it from your actual payments and income, and shows where you land against the thresholds lenders typically use.
Worked example — $8,000 gross income, with $1,800 housing, $450 car, $350 loans and $200 card minimums: Total debt is $2,800, so the back-end DTI is 2,800 ÷ 8,000 = 35% — just inside the comfortable band. The front-end (housing-only) ratio is 1,800 ÷ 8,000 = 22.5%.
Front-end vs back-end
There are two versions of the ratio. The front-end DTI counts only your housing cost — rent or mortgage, sometimes with property tax and insurance — against your income; mortgage lenders like to see this around 28% or below. The back-end DTI counts every recurring debt: housing plus car, student, personal and card payments. It is the headline figure, and the one most thresholds refer to. This calculator shows both so you can see each clearly; by default the headline is the back-end ratio.
If you are applying for a mortgage, both matter — a great back-end ratio with a stretched housing cost, or vice versa, can still give an underwriter pause.
The thresholds — and how much room you have
The usual rules of thumb: a back-end DTI at or below about 36% is comfortable, 36–43% is borderline but often still workable, and above 43% makes approval harder. In the US, the qualified-mortgage rule centres on roughly 43%; many lenders prefer 36% or less, and some allow more with compensating factors. In India and elsewhere, lenders use a similar idea under the name FOIR, typically capping it around 40–50%. These are conventions, not laws — they vary by lender, loan type and country, so treat them as guidance rather than a verdict.
Thinking of a new loan? Enter the proposed payment to see your DTI after taking it on, and whether it stays in a workable band. The calculator also shows your headroom — the largest extra monthly payment that keeps you under your target ratio — which is the most actionable number of all.
— Reader questions
What is a good debt-to-income ratio?
As a rule of thumb, a back-end DTI at or below 36% is considered comfortable, 36–43% is borderline but often still acceptable, and above 43% makes borrowing harder. Lower is better — it shows lenders your income can absorb a new payment. The exact cut-offs vary by lender, loan type and country.
How is DTI calculated?
Add up all your monthly debt payments — housing, car, loans, credit-card minimums and any other recurring obligations — and divide by your gross monthly income (before tax), then multiply by 100. This calculator does it from your itemised payments and shows the result against the usual thresholds.
What is the difference between front-end and back-end DTI?
Front-end DTI counts only your housing payment against income; back-end DTI counts all your debts. Mortgage lenders like the front-end ratio around 28% or below and the back-end ratio around 36% or below, though limits vary. The back-end figure is the headline one; this calculator shows both.
Does DTI use gross or net income?
Gross income — your earnings before tax and deductions. That is the convention lenders use, so this calculator uses gross too. Bear in mind your take-home pay is lower, so a ratio that looks fine on gross income can feel tighter in practice.
Will a new loan push me over the limit?
Enter the proposed monthly payment under the advanced options and the calculator shows your DTI after taking it on, plus which band that lands in. It also shows your headroom — the largest extra payment that keeps you under your target ratio — so you know your limit before you apply.
What counts as debt in the ratio?
Recurring obligations: your rent or mortgage, car payments, student and personal loans, minimum credit-card payments, and items like alimony or child support. Everyday spending such as groceries, utilities and subscriptions is generally not counted — lenders focus on contractual debt.