Debt-to-income ratio is the single number that decides most mortgage applications. You can have a great credit score and a solid down payment and still be declined if your DTI is too high — or sail through with a mediocre score if your DTI is low. This calculator shows both ratios lenders actually use and tells you which loan programs you currently fit.
Debt-to-Income (DTI) Calculator
Lenders approve or decline largely on DTI. See your front-end and back-end ratios and which loan programs you fit.
Monthly income
Monthly debt payments
Guideline estimates for 2026. Actual approval depends on credit score, reserves, residual income and lender overlays. Not a loan offer or financial advice.
How to use this calculator
Enter your gross (pre-tax) monthly income and the total proposed housing payment — that means principal, interest, taxes, insurance and HOA, not just the mortgage. Then add your recurring monthly debts. The calculator returns your front-end ratio (housing only) and back-end ratio (housing plus all debt), plus a plain-language verdict and which programs you qualify for.
Front-end vs back-end DTI
- Front-end DTI = total housing payment ÷ gross monthly income. The classic comfort target is 28%.
- Back-end DTI = (housing + all other monthly debt) ÷ gross monthly income. The classic target is 36%, though programs allow more.
Lenders weight the back-end ratio most heavily because it captures your full obligation load. A 28% front-end means little if car loans, student loans and credit cards push the back-end to 50%.
The program limits that actually matter in 2026
| Program | Front-end | Back-end (typical max) |
|---|---|---|
| Conventional | 28% | 36%, up to ~45% with strong credit/reserves |
| FHA | 31% | 43%, up to ~50% with compensating factors |
| VA | no hard cap | ~41% guideline, residual-income tested |
| USDA | 29% | 41% |
"Maximum" is not "advisable." Approval at 45% back-end means every dollar is committed before groceries, childcare or a single emergency. The further below the cap you are, the more resilient your finances — and often the better your rate.
What counts as debt (and what does not)
Counts: mortgage/rent being replaced, auto loans, student loans (even deferred — lenders estimate a payment), credit card minimums, personal loans, child support, alimony.
Does not count: utilities, phone, internet, insurance premiums, groceries, taxes withheld, 401(k) contributions, streaming subscriptions. Lenders care about contractual debt, not lifestyle spending.
How to lower your DTI fast
- Pay off a small loan entirely. Removing a $450 car payment can drop back-end DTI several points instantly — often more effective than paying down a large balance.
- Avoid new debt before closing. A new car loan during underwriting is the classic deal-killer.
- Raise documentable income. Overtime, a second job with history, or documented side income can count.
- Buy less house. Lowering the proposed housing payment is the most direct lever — and the calculator shows the effect immediately.
Frequently asked questions
Gross or net income? Gross — pre-tax. All standard DTI guidelines use gross monthly income. Using net would understate your apparent capacity versus how lenders actually calculate.
Are deferred student loans really counted? Usually yes. Most programs require a calculated payment (often 0.5–1% of the balance) even if the loan is in deferment or income-driven $0 repayment. FHA and conventional rules differ slightly.
What back-end DTI is "good"? At or below 36% is strong and program-flexible. 36–43% is workable with good credit. Above 43% narrows your options and raises rates. Above 50% is generally over the line.
Does DTI affect my interest rate? Indirectly. Lower DTI signals lower risk and supports better pricing and easier approval, especially when combined with a strong credit score and reserves.
Why does the lender's DTI differ from mine? They use the fully documented figures — the underwritten housing payment, the credit-report minimums, and program-specific rules for student loans and co-signed debt. Treat this as a close planning estimate.
Can I exclude a debt with few payments left? Some programs let you omit installment debts with roughly 10 or fewer payments remaining. Ask your lender — it can be the difference at the margin.
Methodology
Front-end DTI is the proposed total housing payment divided by gross monthly income. Back-end DTI adds all entered monthly debts before dividing. Program thresholds reflect 2026 conventional, FHA, VA and USDA guidelines; "pass" highlighting uses typical back-end maximums. Actual approval depends on credit, reserves, residual income, automated underwriting and lender overlays. Estimates only — not a loan offer or financial advice.
Written by the CalcCottage team. We show the real number, not the marketing number.
Put this calculator on your site (free)
Copy-paste the code below. Free to use — please keep the attribution link.