DayCents

Mortgages

Debt-to-Income Ratio Calculator

Your debt-to-income ratio is the single number that most decides how big a mortgage you'll qualify for. Enter your gross monthly income and debts to see your front-end and back-end DTI, whether you clear the 36% and 43% thresholds lenders watch, and exactly how much monthly-debt room you have left.

Formula shown below · Tested against worked examplesHow we verify

Pre-tax income — salary plus any steady side income.

Rent or full mortgage payment (principal, interest, taxes, insurance, HOA).

Car loans, student loans, minimum credit-card payments, personal loans.

Your debt-to-income ratio: 32.5%

Your debt-to-income ratio

32.5%

Comfortable — at or below the 36% most lenders want for conventional loans.

Housing ratio (front-end)
25%
Total monthly debt
$2,600
Room before 36%
$280

Extra monthly debt you could add and still sit at 36%.

Max total debt at 36%
$2,880

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Compare scenariosTry three values of one input
Debt-to-Income Ratio Calculator results for three values of Gross monthly income
Gross monthly income
Your debt-to-income ratio36.11%32.5%3.61%29.55%6.57%
Housing ratio (front-end)27.78%25%2.78%22.73%5.05%
Room before 36%-$8$280+$288$568+$576
Max total debt at 36%$2,592$2,880+$288$3,168+$576

Every other input stays at the value you set above — currently $8,000 for gross monthly income. Differences are measured against the first column.

Saved scenariosSave this calculation

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How this calculator works

Front-end ratio = housing payment ÷ gross monthly income. Back-end ratio = (housing + all other monthly debt) ÷ gross monthly income. "Room before 36%" is 36% of your income minus your current total debt.

The 28/36 and 43% thresholds are common industry guidelines, not universal rules — individual lenders and loan programs set their own limits and weigh credit score, reserves, and down payment alongside DTI. This is an educational estimate, not a lending decision.

Formula

Front-end = Housing payment ÷ Gross monthly income Back-end = (Housing + all other debt payments) ÷ Gross monthly income
Housing payment
Principal, interest, taxes, insurance and any HOA dues
Other debt payments
Car, student and personal loans plus credit-card minimums
Gross monthly income
Income before tax — the figure lenders underwrite against

Lenders count payments, not balances: a $500 car payment counts as $500 whether $22,000 or $2,000 remains. Halving a balance changes nothing; clearing the debt removes the whole payment. Living costs — utilities, groceries, childcare — are excluded entirely.

What this assumes

  • Gross income, before tax — the figure lenders underwrite against, not your take-home pay.
  • Only recurring credit obligations count. Utilities, groceries, phone plans, insurance premiums and childcare do not, however large they are.
  • Student loans use the payment on your statement. Treatment of income-driven plans, especially a $0 payment, varies by loan programme.

What changes this number

Debts you can finish
Lenders count payments, not balances. Clearing a $500 car payment adds roughly $79,100 of mortgage capacity; halving the balance adds nothing.
Documented income
Bonus, overtime and self-employment income usually count with a two-year history, and borrowers routinely omit them.
New credit
A car bought two months before applying can cost more borrowing power than the car is worth.

A worked example

Take the comfortable buyer (25% / 32%) scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Gross monthly income
$8,000
Monthly housing payment
$2,000
Other monthly debt payments
$600

What it returns

Your debt-to-income ratio
32.5%
Housing ratio (front-end)
25%
Total monthly debt
$2,600
Room before 36%
$280
Max total debt at 36%
$2,880

Sources

This calculator uses no external data — the result follows entirely from the formula above and the values you enter, so there is nothing to cite beyond the arithmetic.

Calculator last reviewed August 8, 2026. How we verify

Try an example

Frequently asked questions

What is a good debt-to-income ratio?

Lenders generally like to see a back-end DTI (all debt) at or below 36%, and a front-end DTI (housing only) at or below 28% — the classic "28/36 rule." Many mortgage programs will approve up to 43%, and some FHA loans stretch to 50% with strong credit and reserves, but lower is always safer and cheaper.

What's the difference between front-end and back-end DTI?

Front-end DTI counts only your housing payment against gross income. Back-end DTI adds every other monthly debt — car, student, and personal loans plus minimum credit-card payments. Lenders weigh the back-end ratio most because it reflects your total obligations.

Does DTI use gross or net income?

Gross — your income before taxes and deductions. That's why the payment you qualify for on paper can feel higher than what fits your take-home budget. Run our Take-Home Pay calculator to see the number that actually lands in your account.

Which debts count toward DTI?

Recurring monthly obligations that show on your credit report: mortgage or rent, car loans, student loans, personal loans, and minimum credit-card payments. Utilities, groceries, insurance, and streaming subscriptions are not counted — only debt.

How can I lower my DTI?

Two levers: reduce monthly debt (pay off a card or car loan, or refinance to a lower payment) or raise gross income. Even eliminating one small payment can move you under a threshold. Avoid taking on new debt in the months before a mortgage application.

What is my debt-to-income ratio if I earn $8,000 a month?

With a $2,200 housing payment and $600 of other debt, 35% — comfortable, and just inside the 36% most conventional lenders want. Your front-end housing ratio is 27.5%, and you have only $80 a month of room before crossing 36%.

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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.