How to use this DTI calculator
- Enter your gross income per year or per month — your pay before taxes and deductions. If you will apply for a loan with someone else, add their income and their debts.
- Enter your housing payment. Use your rent to check where you stand today. If you are applying for a mortgage, enter the full proposed payment instead (principal, interest, property tax, insurance and any PMI or HOA dues), because that is the payment lenders use.
- Add the minimum monthly payment on each debt — car loans and leases, student loans, credit cards and any other loans — as shown on your statements or credit report.
- Read your results. See your front-end and back-end ratios, how they compare with each loan program, and how much you would need to cut in payments (or add in income) to reach 36%, 43% or 50%.
Front-end vs. back-end DTI
Lenders look at two versions of the ratio:
- Front-end DTI (the housing ratio) counts only your housing payment: rent, or the new mortgage’s principal, interest, taxes, insurance, mortgage insurance and HOA dues.
- Back-end DTI (the total-debt ratio) adds every other monthly debt payment to the housing payment. When people say “DTI,” this is usually the one they mean, and it’s the ratio most loan programs cap.
The long-standing 28/36 rule of thumb says to keep housing at or below 28% of gross income and all debts at or below 36%. FHA and USDA also set front-end limits (31% and 29% respectively), while Fannie Mae and VA focus on the total ratio.
Debt-to-income ratio formula
DTI = (H + D) ÷ I × 100
- H
- monthly housing payment (rent, or mortgage PITI plus mortgage insurance and HOA dues)
- D
- all other required monthly debt payments
- I
- gross monthly income (before taxes)
Front-end DTI = H ÷ I × 100
Worked example
A gross salary of $84,000 a year is I = $7,000 a month. With a $2,000 housing payment (H) and $450 car, $250 student loan and $150 credit card payments (D = $850):
- Front-end DTI = $2,000 ÷ $7,000 = 28.6%
- Back-end DTI = ($2,000 + $850) ÷ $7,000 = $2,850 ÷ $7,000 = 40.7%
To get down to 36%, total payments would have to fall to $2,520 a month — $330 less — or gross income would have to rise to $95,000 a year.
DTI limits by loan type
These are the maximum ratios published by each program. Individual lenders can apply stricter limits, and your credit score, down payment and cash reserves also affect approval.
| Program | Front-end | Back-end | Notes |
|---|---|---|---|
| 28/36 rule of thumb | 28% | 36% | Traditional budgeting guideline, not a lending rule |
| Conventional (Fannie Mae), manual | — | 36% | Standard maximum for manually underwritten loans |
| Conventional, manual + credit & reserves | — | 45% | With the credit score and reserves in Fannie Mae’s Eligibility Matrix |
| Conventional, Desktop Underwriter | — | 50% | Maximum for loans approved through Fannie Mae’s automated system |
| FHA, manual underwriting | 31% | 43% | No compensating factors required |
| FHA, manual + 1 compensating factor | 37% | 47% | 580+ credit score and, e.g., 3 months of reserves |
| FHA, manual + 2 compensating factors | 40% | 50% | 580+ credit score and two factors, e.g., reserves and residual income |
| VA | — | 41% | Guideline; higher is allowed with strong residual income |
| USDA | 29% | 41% | Exceptions possible with compensating factors |
- Conventional loans. Fannie Mae’s Selling Guide caps DTI at 36% for manually underwritten loans, or up to 45% with the credit score and reserves in its eligibility matrix. Loans run through its automated Desktop Underwriter can be approved up to 50%.
- FHA loans. For manually underwritten loans, HUD’s limits are 31%/43%. Borrowers with credit scores of 580 or higher can reach 37%/47% with one compensating factor (such as cash reserves of at least three monthly mortgage payments) or 40%/50% with two. Borrowers below 580 are held to 31%/43%. Loans that receive an “Accept” from FHA’s automated TOTAL Mortgage Scorecard aren’t subject to this manual matrix.
- VA loans. VA’s standard is 41% or less, but it is paired with a residual-income test. Above 41%, a loan needs a written justification — unless residual income exceeds VA’s guideline by at least 20%.
- USDA loans. The housing payment should be at most 29% of income and total debt at most 41%. Exceptions are possible with compensating factors, such as a credit score of 680 or higher or a minimal increase over your current rent.
- The 43% “QM” limit. Until the CFPB’s General QM rule changed, a 43% DTI cap was part of the definition of a standard qualified mortgage. The revised rule, mandatory since October 1, 2022, uses price-based thresholds instead. Lenders must still consider DTI or residual income.
Maximum monthly debt payments by income
The most you could spend on debt payments each month at common DTI limits. For example, on a $75,000 salary, 36% allows $2,250 a month in total payments, and 28% leaves $1,750 for housing.
| Gross annual income | 28% DTI | 36% DTI | 43% DTI | 50% DTI |
|---|---|---|---|---|
| $30,000 | $700 | $900 | $1,075 | $1,250 |
| $40,000 | $933 | $1,200 | $1,433 | $1,667 |
| $50,000 | $1,167 | $1,500 | $1,792 | $2,083 |
| $60,000 | $1,400 | $1,800 | $2,150 | $2,500 |
| $75,000 | $1,750 | $2,250 | $2,688 | $3,125 |
| $90,000 | $2,100 | $2,700 | $3,225 | $3,750 |
| $100,000 | $2,333 | $3,000 | $3,583 | $4,167 |
| $125,000 | $2,917 | $3,750 | $4,479 | $5,208 |
| $150,000 | $3,500 | $4,500 | $5,375 | $6,250 |
| $200,000 | $4,667 | $6,000 | $7,167 | $8,333 |
What counts as debt in your DTI (and what doesn’t)
Lenders use the minimum required monthly payment on each obligation, not what you choose to pay. Included:
- Housing: rent, or the proposed mortgage’s principal, interest, property taxes, homeowners insurance, mortgage insurance and HOA dues.
- Car loans and leases. Fannie Mae counts lease payments no matter how few months remain.
- Student loans, even in deferment or forbearance: for those, Fannie Mae lets lenders use 1% of the balance or a fully amortizing payment.
- Credit card minimum payments. If your credit report shows no minimum, Fannie Mae has lenders use 5% of the balance.
- Personal loans and other installment loans with more than ten payments left (or fewer, if the payment significantly affects your ability to pay other obligations).
- Child support and alimony you are required to pay.
Not included: utilities, phone and internet, groceries, gas, streaming and gym memberships, car and health insurance premiums, and income taxes. These don’t show up in the ratio, which is why a “good” DTI can still leave a tight budget.
What is a good debt-to-income ratio?
Our calculator rates your back-end ratio in four bands tied to the program limits above:
| Back-end DTI | Rating | What it means |
|---|---|---|
| 36% or less | Good | Within the 36% total-debt limit of the 28/36 guideline and Fannie Mae’s manual-underwriting limit |
| 36.1%–43% | Acceptable | Within FHA’s standard 43% total-debt limit; above 41% exceeds the VA and USDA guidelines |
| 43.1%–50% | High | Usually needs automated approval or compensating factors |
| Over 50% | Very high | Above most mortgage program maximums |
How to lower your DTI
- Eliminate a payment entirely. Extra payments on an installment loan don’t lower its required payment until it’s paid off, so clearing one small loan usually helps DTI more than spreading the same money around. In the example above, paying off the $150-a-month card lowers DTI from 40.7% to 38.6%; paying off the $450 car loan brings it to 34.3%. Our credit card payoff calculator can show how long that takes.
- Pay down credit cards. Card minimums usually shrink as balances fall, which lowers DTI and credit utilization together.
- Avoid new debt before you apply, including a new car loan or store financing.
- Lower the housing payment with a less expensive home or a larger down payment. The house affordability calculator turns a DTI target into a price range, and the mortgage calculator shows the full payment.
- Refinance or consolidate carefully. A longer term lowers the payment but usually raises the total interest — check the trade-off with our loan calculator.
- Add income a lender can verify, such as a co-borrower’s pay or documented part-time income.
DTI vs. credit utilization
The two ratios are often confused, but they measure different things:
| Debt-to-income ratio | Credit utilization | |
|---|---|---|
| Formula | Monthly debt payments ÷ gross monthly income | Credit card balances ÷ credit limits |
| Debts included | All loans, cards and housing | Revolving accounts (mainly credit cards) |
| Who uses it | Lenders, when you apply for a loan | Credit scoring models |
| Affects your credit score? | No — income isn’t on your credit report | Yes |
| Common guideline | 36% or less | No more than 30% (CFPB) |
The CFPB notes that experts advise keeping credit use at no more than 30% of your total limits. You can have a low utilization and a high DTI (for example, with large car and student loan payments), or the reverse.
Frequently asked questions
What is a good debt-to-income ratio?
A back-end DTI of 36% or less is generally considered good: it matches the 36% total-debt half of the traditional 28/36 guideline and Fannie Mae’s standard limit for manually underwritten conventional loans. FHA’s standard limit for manually underwritten loans is 43%, and conventional loans approved through Desktop Underwriter can go up to 50%. Lower is better, because less of your income is committed to debt before you pay for everything else.
How do you calculate your debt-to-income ratio?
Add up your required monthly debt payments and divide by your gross (pre-tax) monthly income. In the CFPB’s example, a $1,500 mortgage, a $100 car loan and $400 of other debts total $2,000. Divided by $6,000 of gross monthly income, that is a DTI of 33.3%. Multiply by 100 to express the ratio as a percentage.
What is the maximum DTI for a mortgage?
It depends on the loan. Fannie Mae allows up to 50% for loans approved through Desktop Underwriter, and 36%–45% when a loan is underwritten manually. FHA’s manual limits run from 31%/43% up to 40%/50% with compensating factors. VA uses 41% as a guideline alongside residual income, and USDA uses 29%/41%. Individual lenders may set stricter limits.
Is 43% still the DTI limit for a qualified mortgage?
No. The 43% cap was part of the CFPB’s original General Qualified Mortgage definition. A rule finalized in December 2020, which lenders have had to follow since October 1, 2022, replaced it with limits based on how a loan’s APR compares with the average prime offer rate. Lenders must still consider your DTI or residual income, and 43% remains FHA’s standard limit for manually underwritten loans.
Does DTI use gross or net income?
Gross income. Lenders divide your debts by your monthly income before taxes, retirement contributions and other paycheck deductions, so your take-home pay is lower than the income used in the ratio. That is also why a DTI that looks acceptable on paper can feel tight in real life: taxes, groceries, utilities and savings all come out of the part of your income the ratio treats as “left over.”
Do utilities, insurance and groceries count toward DTI?
No. DTI counts debts and debt-like obligations: your housing payment, car loans and leases, student loans, credit card minimums, personal loans and court-ordered child support or alimony. Everyday living costs such as utilities, phone and internet bills, groceries, gas, and car or health insurance premiums are not included, even though they matter for your budget. Homeowners insurance counts only as part of the mortgage payment.
Does your debt-to-income ratio affect your credit score?
Not directly. Credit scores are built from your credit reports, which show your debts and payment history but not your income, so DTI isn’t part of the score. Credit utilization, the share of your credit card limits you are using, does affect scores. Paying down card balances can help both: it lowers your utilization and, as minimum payments drop, your DTI.