What is a debt-to-income (DTI) ratio?
DTI is the percentage of your gross monthly income that goes toward monthly debt obligations. Lenders review it—alongside your credit, assets, and employment—to determine affordability and risk.
How to use the DTI calculator
- Enter your gross monthly income (before taxes).
- Add all recurring monthly debt payments (credit cards, auto, student loans, etc.).
- Optionally include your expected mortgage P&I, taxes, insurance, and HOA to see front-end DTI.
What is included in DTI?
Included: minimum credit card payments, student loans, auto loans, personal loans, child support/alimony, and (for front-end) proposed housing costs (P&I, taxes, insurance, HOA). Excluded: utilities, groceries, gas, childcare, and income taxes.
What is a good DTI for a mortgage?
Conventional loans often target ≤28% front-end and ≤36% back-end (can go higher with strong compensating factors). FHA/VA/USDA programs can allow higher DTIs depending on credit, reserves, and automated underwriting findings.
Front-end vs. back-end DTI
Front-end DTI (housing ratio) = housing costs ÷ income. Back-end DTI = (housing + all other monthly debts) ÷ income. Lenders primarily look at back-end DTI.
How to improve your DTI
- Pay down revolving balances (credit cards) to reduce minimums.
- Avoid new debt before applying.
- Consider a longer loan term to lower P&I (trade-off: more interest over time).
- Increase income or add a co-borrower (where appropriate).
Frequently asked questions
Does DTI affect credit score? No—DTI isn’t on your credit report, but high balances can impact your credit utilization and score.
Can I get a mortgage with high DTI? Possibly—some programs allow higher DTIs with strong credit, reserves, or lower LTV.