Finance

Debt-to-Income Calculator

Calculate front-end and back-end DTI ratios used by mortgage and credit underwriters

FAQs

What is a good debt-to-income ratio?

In many lending contexts, under 36% back-end DTI is considered strong, while 43% is often an upper limit for conventional qualification.

What is the difference between front-end and back-end DTI?

Front-end DTI compares housing costs to gross income. Back-end DTI includes housing plus all recurring debt obligations.

How to Use the DTI Calculator

  1. Enter your gross monthly income before taxes.
  2. Enter your recurring monthly debt payments (cards, loans, etc.).
  3. Enter your projected monthly housing payment.
  4. Review front-end and back-end DTI percentages.

DTI Formulas

Front-End DTI

Front-end DTI = Housing Cost / Gross Income × 100

Back-End DTI

Back-end DTI = (Housing Cost + Other Debt) / Gross Income × 100

Use Cases

Mortgage pre-check

Estimate borrowing readiness before applying.

Budget planning

Keep debt obligations aligned with income changes.