Your debt-to-income (DTI) ratio is one of the most important numbers lenders use to evaluate your loan applications. Enter your monthly debts and income to see your current DTI and whether you have room for additional borrowing.
Debt-to-income (DTI) ratio is the single most important number lenders use to decide whether to approve you for a mortgage, auto loan, or major credit application. It's the percentage of your gross monthly income that already goes to recurring debt payments. The lower the number, the more borrowing capacity you have — and the better your financial flexibility regardless of borrowing plans.
This calculator computes your front-end DTI (housing only) and back-end DTI (all debt) — the two numbers lenders quote. It also lets you add a proposed new payment to see how a future loan affects your ratios.
The conventional cutoffs: - **28/36 rule** (conservative): housing ≤28%, total debt ≤36% - **43% maximum** for Qualified Mortgages under CFPB rules - **45–50%** stretches available with strong compensating factors (excellent credit, large reserves)
Being technically approvable at 43% doesn't mean you should borrow that much. DTI captures debt obligations but not lifestyle expenses, savings goals, or quality of life.
Income $7K/mo. Rent $1,800, car $300, student loans $250. Total debt: $2,350 Front DTI: 26%, Back DTI: 34% Both inside the conservative 28/36 thresholds. Maximum mortgage approval would substantially exceed current rent — but the household has good flexibility and savings room.
Income $5,500/mo. Mortgage $1,650, car $450, student loans $400, CC mins $150. Total debt: $2,650 Front DTI: 30%, Back DTI: 48% Above the standard QM 43% cap. Refinancing the car or paying down student loans would bring DTI back into range. Many lenders won't approve at 48% without strong compensating factors.
Use this calculator before any major credit application (mortgage, auto, refi, large personal loan) to see whether you'll qualify and at what terms. Also use it as a periodic financial-health check.
To improve DTI quickly: - Pay off the smallest debt to remove a monthly payment - Refinance a high-payment loan to a longer term (lower monthly, even at same rate) - Add a creditworthy co-borrower (combines incomes) - Increase income (raise, side hustle, bonus history) - Wait — paying down balances over time naturally lowers monthly minimums
For pre-mortgage planning specifically, use the home affordability calculator, which derives the maximum home price your DTI supports.
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New loan or debt you are considering
Current DTI
38.3%
Rating
Fair
Remaining Capacity
$0.00