Debt-to-Income Ratio Calculator (DTI)
What is my debt-to-income ratio? Enter your gross monthly income, your housing payment and your other monthly debt payments to see your front-end and back-end DTI.
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Formula
front-end DTI = housing payment ÷ gross monthly income × 100back-end DTI = (housing payment + other monthly debts) ÷ gross monthly income × 100
Common thresholds
These bands follow a common US guideline (the 28/36 rule and the widely quoted 43% ceiling). They are general guides, not rules, and lenders and countries set their own limits.
| Back-end DTI | Common reading |
|---|---|
| 36% or less | Comfortable |
| Over 36% up to 43% | Borderline |
| Over 43% | High |
The 28/36 rule also suggests keeping the front-end ratio under 28%.
Worked example
Gross income 6,000 a month, housing 1,500, other debts 600:
- Front-end: 1,500 ÷ 6,000 = 25%
- Back-end: (1,500 + 600) ÷ 6,000 = 35%, which is within the comfortable range.
When to use it
Use DTI before you apply for a mortgage or when you are deciding how much new debt you can take on. For the highest price that fits your ratios, use the home affordability calculator, which uses the same ratios. For a payment you already know, the mortgage calculator gives the monthly cost.
Second example
Income 5,000 a month, housing 1,500, other debts 800:
- Front-end: 1,500 ÷ 5,000 = 30%.
- Back-end: 2,300 ÷ 5,000 = 46%, above the common 43% ceiling.
- To reach 43% the total debt must be 2,150 or less, a cut of 150 a month.
Common mistakes
- Using net pay instead of gross income.
- Leaving out minimum card payments or student loans.
- Counting everyday expenses such as food and utilities, which DTI ignores.
- Treating the bands as a promise that a lender will approve you.
Frequently asked questions
How do I calculate my debt-to-income ratio?
Add up your monthly debt payments and divide by your gross monthly income. With 1,500 of housing and 600 of other debts on 6,000 of income, DTI is 2,100 ÷ 6,000 = 35%.
What is the difference between front-end and back-end DTI?
Front-end DTI counts only housing costs (1,500 ÷ 6,000 = 25%). Back-end DTI adds all other monthly debts such as car loans, student loans and card minimums (35% in this example).
What is a good debt-to-income ratio?
A common US guideline is the 28/36 rule: housing under 28% and total debt under 36% of gross income. Many lenders accept up to about 43%, though limits differ by lender and country.
What counts as debt in DTI?
Recurring minimum payments on loans and credit cards, plus rent or the mortgage with taxes and insurance. Everyday spending like food and utilities is usually left out.
What DTI do I need to get a mortgage?
Limits vary by lender, loan type and country. In the US, 36% back-end is a common comfortable target and many lenders go up to about 43%. A 5,000 income with 1,500 of housing and 800 of other debts has a DTI of 2,300 ÷ 5,000 = 46%, which is high.
How can I lower my debt-to-income ratio?
Either raise income or cut monthly payments. In the 46% example, paying off a 300 a month loan lowers the total to 2,000 and the DTI to 40%. Paying down a loan only helps if its payment disappears.
How do I calculate DTI in Excel?
Use =(housing+other debts)/gross income. For 1,500 of housing, 200 of other debts and 6,000 of income, =(1500+200)/6000 returns 0.2833, or 28.33%. Front-end DTI is just =1500/6000, or 25%.