What is a good debt-to-income ratio?

Most lenders prefer a back-end DTI (all debt payments divided by gross income) of 36% or less, though many mortgage programs allow up to 43% or even 50%. The front-end DTI (housing costs only) should ideally be below 28%. Lower DTI ratios not only improve your approval odds but may also qualify you for better interest rates.

How do I calculate my debt-to-income ratio?

Add up all your monthly debt payments — mortgage/rent, car loans, student loans, credit card minimums, and any other recurring debt obligations. Divide that total by your gross monthly income (before taxes and deductions). Multiply by 100 to get a percentage. For example, $2,000 in monthly debt payments on $6,000 gross income is a 33% DTI.

Home & Mortgage

What Is Your Debt-to-Income Ratio?

Calculate your front-end and back-end DTI ratios to understand how lenders view your finances. Compare your numbers against Conventional, FHA, and VA loan guidelines — and model a proposed payment to plan ahead.

Current Monthly Payment

—

New Monthly Payment

—

Est. Interest Saved

—

Break-Even

—

Your Finances

Monthly Gross Income

Before taxes and deductions

Monthly Housing Payment

Mortgage/rent + taxes + insurance

Other Monthly Debts

Car, student loans, credit cards, etc.

Total Debt-to-Income Ratio

34.3%

Well within typical guidelines

Housing Ratio

25.7%

Good — target ≤28%

Housing DTI (Front-End)

25.7%

0%28%36%60%

$160/mo room within 28% guideline

Total DTI (Back-End)

34.3%

0%36%43%60%

$120/mo room within 36% guideline

Income Allocation

How your gross monthly income is divided

Each bar shows what percentage of your gross income goes to that category. The dashed line marks the 36% conventional loan guideline for total debt.

Loan Qualification Snapshot

Conventional

Likely Qualifies

FHA

Likely Qualifies

Monthly Income

Gross income before taxes

Monthly Total$6,500

Monthly Debts

Minimum required payments

Housing

Other

Housing$1,800

Other$900

Total Monthly Debt$2,700

What-If Scenario

Use a proposed housing payment instead

Enable to see how a new mortgage would affect your DTI.

Total Debt-to-Income Ratio

41.5%

Acceptable — all debts ÷ gross income

Housing Ratio

27.7%

Good — target ≤28%

Max recommended housing

$1,820/mo

$20 room

Max recommended total debt

$2,340/mo

Housing DTI

27.7%

0%28%36%60%

Total DTI

41.5%

0%36%43%60%

Income Allocation

Shows how your gross monthly income is allocated across housing, other debt, and remaining income. The dashed line marks the 36% conventional loan guideline.

Mortgage Qualification Assessment

Based on DTI ratios only. Actual approval depends on credit score, down payment, and reserves.

Conventional

Unlikely

Front-end limit28%

Back-end limit36%

Back-end DTI of 41.5% exceeds the 36% guideline.

FHA

Likely Qualifies

Front-end limit31%

Back-end limit43%

Your DTI ratios are within FHA loan guidelines.

VA

May Qualify

Front-end limit41%

Back-end limit41%

Back-end DTI of 41.5% exceeds the VA 41% guideline. Residual income may still allow approval.

Financial Summary

Metric	Value	Guideline	Status
Gross Monthly Income	$6,500	—	—
Housing Payments	$1,800	$1,820	Good
Other Debts	$900	—	—
Total Monthly Debt	$2,700	$2,340	Acceptable
Available After Debt	$3,800	—	—
Front-End DTI	27.7%	≤28%	Good
Back-End DTI	41.5%	≤36%	Acceptable

About This Analysis

This calculator provides estimates based on the inputs you supply. It assumes standard amortization and does not account for taxes, insurance, PMI, prepayment penalties, or the opportunity cost of funds. Results are for informational and educational purposes only and should not be considered financial advice. Consult a qualified professional before making financial decisions.

·DTI ratios are one of many factors lenders evaluate.
·Actual loan qualification depends on credit score, down payment, reserves, and lender-specific guidelines.

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What Is Your Debt-to-Income Ratio?

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