Debt-to-Income Ratio Calculator
Calculate your front-end and back-end DTI ratios, benchmark against the 28/36 rule, and assess mortgage qualification readiness.
Income and Debt Inputs
Housing Payment
Monthly Debt Payments
Front-End / Housing Ratio
25.4%
Within 28% Guideline
Back-End / Total DTI Ratio
40.9%
Approaching 43% Cap
Total Monthly Debt
$2,900
All recurring debt payments combined
Remaining Borrowing Capacity
$0
Room before hitting 36% limit
Monthly Debt Breakdown
Each debt category as a percentage of gross monthly income
| Category | Monthly Payment | % of Income |
|---|---|---|
| Mortgage / Rent | $1,800 | 25.4% |
| Property Tax / Insurance | $0 | 0.0% |
| Auto Loans | $450 | 6.4% |
| Credit Cards | $300 | 4.2% |
| Student Loans | $250 | 3.5% |
| Other Debts | $100 | 1.4% |
Max Mortgage at 28% Rule
Maximum housing payment at your income level
Understanding Front-End, Back-End, and the 28/36 Rule
Front-End / Housing Ratio
The percentage of gross monthly income consumed by housing costs alone, including principal, interest, taxes, insurance, and HOA fees. Lenders prefer this ratio at or below 28%.
Back-End / Total DTI Ratio
The percentage of gross monthly income consumed by all recurring debt payments combined: housing, auto loans, credit cards, student loans, and any other debt obligations. The conventional guideline caps this at 36%.
The 28/36 Rule
A longstanding mortgage lending benchmark stating that no more than 28% of gross monthly income should go toward housing costs, and no more than 36% should cover all debt payments combined.
Qualified Mortgage 43% Cap
Under the Consumer Financial Protection Bureau Qualified Mortgage rule, lenders generally cannot approve loans if the borrower back-end DTI exceeds 43%, regardless of other compensating factors.
Frequently Asked Questions
DTI Ratio Benchmark Matrix
| DTI Range | Lender Assessment | Recommended Action |
|---|---|---|
| Under 36% Back-End | Healthy / Approvable | Maintain current debt levels and monitor before major purchases |
| 36% to 43% Back-End | Caution / Conditional Approval | Pay down revolving debt and avoid new credit applications before mortgage |
| Over 43% Back-End | High Risk / Likely Denial | Aggressively reduce monthly debt or increase income before applying |
| Over 50% Back-End | Critical Risk / Not Eligible | Reduce debt substantially before applying for any loan |
3 Common DTI Calculation Mistakes
Using net (take-home) income instead of gross (pre-tax) income, which understates the DTI ratio and creates false confidence in qualification readiness.
Forgetting to include minimum credit card payments, child support, alimony, or other court-ordered payments in the monthly debt total.
Counting one-time or irregular expenses (annual insurance premiums, quarterly tax payments) as recurring monthly debt when lenders only consider fixed monthly obligations.