Debt-to-Income Ratio Calculator (DTI) — lender-style debt ratio.
Debt-to-Income Ratio Calculator
Measure how much of your monthly income is already committed to debt payments before applying for new credit.
Monthly income and debt
Lender-style breakdown
What DTI tells lenders
Debt-to-income ratio compares a borrower’s recurring monthly debt payments to their monthly income. It is often used by mortgage lenders and other creditors to gauge affordability and credit risk.
A lower DTI usually indicates more financial flexibility, while a higher DTI can mean a tighter monthly budget and a greater chance of strain when loan payments rise.
Different lenders use slightly different rules. Some look at housing costs only (front-end ratio), while others look at all recurring debt obligations (back-end ratio).
- Lower DTI often improves approval odds.
- Front-end ratio focuses on housing costs.
- Back-end ratio includes all recurring debts.
- Income and taxes can materially change the ratio.
Frequently asked questions
What is a good DTI ratio?
Many lenders prefer a back-end ratio below 43%, though lower ratios generally look stronger.
What is the difference between front-end and back-end?
Front-end looks at housing costs relative to income. Back-end includes housing plus other debt obligations.
Should I use gross or net income?
Lenders usually use gross monthly income for standard DTI calculations, but some personal budgeting scenarios use net income.
Does this include all monthly debts?
It includes the common recurring debts you enter, including housing, auto, student loans, credit cards, and other recurring obligations.
Is this a loan approval estimate?
No. This is a planning tool, not a lender decision or guarantee.