Debt-to-Income (DTI) Calculator
DTI is one of the most common affordability metrics used for loans and mortgages. This calculator shows both front-end (housing) and back-end (total debt) ratios.
DTI definition (snippet-ready) + formula
Debt-to-income (DTI) is the percentage of your gross monthly income used for required monthly debt payments.
Back-end DTI: DTI = Total monthly debt payments ÷ Gross monthly income
Front-end DTI (housing): Housing DTI = Monthly housing cost ÷ Gross monthly income
DTI guideline ranges (table)
| Back-end DTI | Common interpretation | Notes |
|---|---|---|
| 0%–20% | Very low debt burden | Typically strong affordability buffer. |
| 20%–35% | Moderate | Often manageable with stable income. |
| 35%–43% | Higher | Many lenders use thresholds in this range. |
| 43%+ | Very high | Affordability risk is higher; approval may be harder. |
Related calculators
- If you’re house hunting: Mortgage Affordability Calculator
- Estimate a target down payment timeline: Savings Goal Calculator
- If you need payment math: Mortgage Calculator
- Improve credit card ratios: Credit Utilization Calculator
- To reduce high-interest debt: Credit Card Payoff Calculator
Quick decision guide (what to do with your DTI)
- DTI is high because of revolving debt: prioritize paydown (minimums drive DTI) and re-check in 30–60 days.
- DTI is high because housing is expensive: lower target home price, increase down payment, or adjust your DTI rule.
- DTI is fine but cash flow feels tight: add a buffer for utilities/maintenance and verify your full monthly budget.
Common mistakes (and how to avoid them)
- Using net income instead of gross: most DTI definitions use gross (pre-tax) income, especially in lending contexts.
- Using balances instead of payments: DTI uses required monthly payments (minimums / installment payments), not total balances.
- Forgetting periodic obligations: convert quarterly/annual obligations into monthly equivalents if they are required (e.g., support obligations).
- Assuming DTI = approval: underwriting also considers reserves, credit history, and program rules. Use DTI as a baseline, not a guarantee.
How we maintain accuracy (methodology)
We document assumptions and update practices (especially for finance metrics). See Editorial Policy & Methodology.
Frequently Asked Questions
Q:What is a good DTI ratio?
Lower is generally better. Many decisions use ranges like under ~35% as stronger, while higher ratios can indicate tighter cash flow. Use DTI as one factor among many.
Q:What’s the difference between front-end and back-end DTI?
Front-end DTI is housing costs divided by gross income. Back-end DTI is total debt payments (housing + other debts) divided by gross income.
Q:Should I use gross or net income for DTI?
Most DTI definitions use gross (pre-tax) income, especially in lending contexts.
Q:What counts as debt payments?
Include required monthly payments: credit card minimums, auto/student loans, personal loans, child support/alimony if applicable, and housing payments.
Q:Do utilities count as debt?
Usually no. Utilities are living expenses, not debt obligations, but they still affect affordability.
Q:How do I lower my DTI?
Increase income, pay down debt (especially revolving), refinance to lower payments, or extend timelines — but consider total interest cost.
Q:Does paying off a credit card lower DTI?
Yes — if it reduces your required monthly minimum payment.
Q:Is DTI used outside mortgages?
Yes. Many lenders and landlords use DTI-like checks to assess risk and affordability.
Q:Can I have a high DTI and still be approved?
Sometimes. Underwriting also considers credit score, savings, job stability, and compensating factors. DTI is only one piece.
Q:How accurate is this calculator?
It’s accurate for the arithmetic definition of DTI. The real-world decision outcome depends on lender policies and your full profile.
Q:Should I use minimum payments or full balances for DTI?
Use required monthly payments (minimums for credit cards + installment payments). DTI is based on monthly obligations, not total balances.
Q:Why is DTI useful if I still feel broke?
DTI doesn’t include non-debt living costs (food, childcare, utilities). It’s an underwriting metric — you still need a full budget to reflect real cash flow.
Q:Does rent count in DTI?
Yes. Rent is usually treated as the housing payment in front-end DTI, and it also contributes to total monthly obligations in back-end DTI.
Q:Do BNPL (buy now, pay later) payments affect DTI?
They can, if they create required monthly payments. If you consistently have BNPL installments, include them as part of monthly debt payments.