Debt-to-income (DTI) ratio calculator
Your DTI is all your monthly debt payments divided by your gross monthly income. See where you stand before you apply for a mortgage.
How it's calculated
Front-end DTI = housing payment / gross monthly income. Back-end DTI = (housing payment + all other monthly debt payments) / gross monthly income. Use minimum required payments, not what you choose to pay, and income before taxes. Utilities, groceries and insurance other than in your housing payment are not debts.
Benchmarks we compare against: the 28/36 rule of thumb; Fannie Mae's 36% maximum for manually underwritten loans (45% with strong credit and reserves, 50% with its automated underwriting); and FHA's 31%/43% manual underwriting benchmarks. Lenders apply their own overlays.
Frequently asked questions
What is a good debt-to-income ratio for a mortgage?
The lower the better. A back-end ratio at or under 36% meets the classic guideline and Fannie Mae's limit for manual underwriting; many loans are approved above that with strong credit, savings or automated underwriting, up to around 45-50%.
Is DTI calculated with gross or net income?
Gross: your income before taxes and other deductions, divided into the total of your monthly debt payments.
How can I lower my DTI?
Pay down or pay off debts with high monthly payments, avoid new debt before applying, add a co-borrower's income, or look at a less expensive home or a larger down payment to reduce the housing payment.
Sources
- CFPB — What is a debt-to-income ratio?
- Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios
- HUD Single Family Housing Policy Handbook 4000.1 (FHA underwriting)
Results are estimates for information only and are not legal, tax or financial advice. Confirm the figures with your lender, title or escrow company and the county offices.
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