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
- Max total debt at 36%
- $2,880
Extra monthly debt you could add and still sit at 36%.
Compare scenariosTry three values of one input
| Gross monthly income | |||
|---|---|---|---|
| Your debt-to-income ratio | 36.11% | 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
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
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%.
This calculator helps answer
Read more about this
How Much House Can You Afford? The 28/36 Rule Explained
Lenders decide how much house you can afford with two ratios: housing costs under 28% of income, and total debt under 36%. Here is how the 28/36 rule works, why your down payment matters twice, and how to find your real budget.
What Is a Good Debt-to-Income Ratio?
Your debt-to-income ratio is the number lenders weigh most for a mortgage: total monthly debt divided by gross income. Here's what counts, what's considered a good DTI, and how to lower yours before you apply.
How Credit Scores Work (and How to Improve Yours)
Your credit score summarizes how reliably you repay debt and shapes the rates you're offered. Here are the five factors that build it, the fastest levers to raise it, and the myths to ignore.
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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.