What is a good debt-to-income ratio?

A front-end DTI below 28% and back-end DTI below 36% is considered excellent. Most conventional loans require a back-end DTI below 43%, though some programs allow up to 50% with compensating factors.

What's the difference between front-end and back-end DTI?

Front-end DTI only includes housing costs (mortgage, taxes, insurance, HOA) divided by gross income. Back-end DTI includes all monthly debt payments (housing plus car loans, student loans, credit cards) divided by gross income.

How can I improve my debt-to-income ratio?

You can improve your DTI by increasing your income through raises, side jobs, or additional employment, or by decreasing your debt through paying down balances, consolidating loans, or avoiding new debt obligations.

Debt-to-Income Ratio Calculator

Calculate your DTI ratio and see if you qualify for a mortgage

Income

Gross Monthly Income Income before taxes and deductions

Housing Costs (Front-End DTI)

Monthly Mortgage/Rent Payment

Property Tax (Monthly)

Home Insurance (Monthly)

HOA Fees (Monthly)

PMI (Monthly)

Other Monthly Debt Payments

Car Loan(s)

Student Loans

Credit Card Minimum Payments

Personal Loans

Other Debt Obligations

Understanding Debt-to-Income Ratio

DTI ratio is a key factor lenders use to evaluate loan applications. Front-end DTI shows housing affordability, while back-end DTI shows overall debt burden. Lower ratios indicate better financial health and higher approval likelihood.

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