Free DTI Ratio Calculator

Find out your debt-to-income ratio instantly. See if you qualify for a mortgage or personal loan — and what lenders see when they review your file.

✓ No signup ✓ Instant results ✓ Lender-grade DTI

Enter Your Details

Adjust sliders — results update live.

Monthly Debt Payments
$1,200
$0$5,000
$350
$0$2,000
$150
$0$1,000
$200
$0$2,000
$0
$0$1,000
Monthly Income
$5,000
$1,000$20,000
💡 Pro tip: Use gross (pre-tax) income. Not sure what APR you'd get? Check your credit score first.

Your DTI Result

Based on your monthly debt vs. income

38%
DTI Ratio
Fair
Your DTI
38%
Monthly Debt
$1,900
Monthly Income
$5,000
Max Debt for Good DTI
$1,750

DTI Scale Reference

How lenders interpret your debt-to-income ratio

DTI Range Rating Lender View
Under 20% Excellent Easily approved — lowest rates available
20% – 35% Good Strong applicant — competitive rates
36% – 43% Fair Approved with conditions — higher rates likely
44% – 50% Poor Likely declined by most lenders
Over 50% Critical Very hard to get loan — focus on paydown first

How to Lower Your DTI

💳
Pay Down Credit Cards
Reducing your credit card balances lowers your minimum payments and is the fastest way to drop your DTI without needing more income.
🚫
Avoid New Debt
Don't open new credit lines or take on loans before applying. Every new monthly obligation raises your DTI and can disqualify your application.
📈
Increase Your Income
A side job, freelance work, or a raise directly increases your gross income — the denominator in DTI — bringing your ratio down fast.

Ready to Apply?

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How DTI Is Calculated

Debt-to-Income ratio is the percentage of your gross monthly income that goes toward paying debts:

DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

Front-End vs. Back-End DTI

Front-end DTI only counts housing costs (mortgage/rent, taxes, insurance). Most conventional lenders want this under 28%.

Back-end DTI counts all monthly debt obligations — what this calculator computes. Most lenders use back-end DTI for final decisions. FHA allows up to 43%, conventional prefers under 36%.

  • Example: $1,900 monthly debts ÷ $5,000 gross income = 38% DTI
  • To stay under 35%: keep total debts under $1,750/month on a $5,000 income
  • Income used is always gross (before taxes), not take-home pay
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Frequently Asked Questions

What is a good DTI ratio for a mortgage?
Under 43% DTI is the FHA minimum requirement. Conventional lenders prefer under 36%. The best mortgage rates typically go to borrowers with a front-end DTI under 28% and a back-end DTI under 36%. Some lenders may approve up to 50% with strong compensating factors like excellent credit or a large down payment.
How do lenders calculate DTI?
Lenders use two measures: Front-end DTI includes only housing costs (mortgage/rent, property taxes, insurance) divided by gross income. Back-end DTI includes all monthly debts (housing + car + credit cards + student loans + other) divided by gross income. Most lenders rely on back-end DTI when making lending decisions.
Does DTI affect my interest rate?
Yes — a lower DTI signals lower default risk to lenders, which often results in better rates. Borrowers with DTI under 36% typically see the most competitive offers. A high DTI can raise your rate significantly or disqualify you from certain loan programs entirely.
What counts as debt in DTI calculation?
Monthly minimums on credit cards, car loan payments, student loan payments, personal loan payments, mortgage or rent, child support or alimony. Things that do NOT count: utilities, groceries, insurance premiums, streaming subscriptions, phone bills, or other living expenses.
How can I lower my DTI quickly?
Fastest strategies: (1) Pay down credit card balances to lower minimum payments. (2) Avoid taking on new debt before applying. (3) Increase gross income with freelance work or a raise. (4) Pay off small debts entirely to eliminate those monthly obligations. (5) Refinance high-payment debts to lower monthly amounts.
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