What is a debt-to-income (DTI) ratio?

Your DTI is the share of your gross monthly income that goes to debt payments. The front-end ratio counts only housing; the back-end ratio counts all debts including housing. Lenders use it to judge how much more you can safely borrow.

What is a good DTI ratio?

Lower is better. A back-end DTI under 36% is comfortable and widely preferred; many mortgage programs allow up to about 43%, and some go higher with compensating factors. Above roughly 43-50% it becomes hard to get approved. Outside the US, lenders use a similar limit sometimes called FOIR, often 40-50%.

Does DTI use gross or net income?

Lenders use gross (pre-tax) monthly income. Enter your income before tax and deductions for a figure that matches how a lender would calculate it.

How can I lower my DTI?

Pay down or pay off a debt (a car loan or credit card), avoid taking on new debt before applying, or increase your documented income. Removing a monthly payment often lifts your borrowing power more than a modest pay rise.

fin·calc

Debt-to-Income (DTI) Calculator

Updated: August 2026 · Guideline ratios — lenders vary.

Enter your gross monthly income, your housing payment and your other monthly debt payments, and this calculator gives you the two ratios lenders look at — the front-end (housing only) and back-end (all debt) DTI — plus what each figure means for a loan application. It works in any currency.

Gross monthly income

Housing payment / mo

Other debt payments / mo

Front-end DTI (housing)

25%

Back-end DTI (all debt)

33%

Lenders use gross (pre-tax) income. The back-end ratio is the one most lenders weigh most heavily. See how much house this supports →

Front-end vs back-end DTI

Lenders look at two versions of the same idea — how much of your income is already committed to debt:

Front-end ratio counts only your housing payment (rent or mortgage, and often taxes and insurance) as a share of gross income. A common guideline is 28%.
Back-end ratio counts all your monthly debt — housing plus car loans, student loans and credit-card minimums. This is the number most lenders weigh most, and 36% is the classic comfortable ceiling, with many mortgages allowing up to about 43%.

Because the back-end ratio includes everything, it is the figure to watch when you're planning a big loan.

Worked example

On $6,000 gross monthly income with a $1,500 housing payment and $500 of other debt payments, your front-end DTI is 25% and your back-end DTI is 33% — both under the usual limits, so a lender would see room to lend. Change the numbers above to test a scenario, such as adding a car loan.

How to improve your DTI before applying

Clear a whole payment. Paying off a car loan or a card removes its monthly payment entirely, which often helps more than a small pay rise.
Don't take on new debt in the months before you apply — a new financing agreement raises your back-end ratio.
Document all income. Bonuses, side income and allowances can count if they're steady and provable.

Methodology & assumptions

Front-end DTI = housing payment ÷ gross monthly income. Back-end DTI = (housing + all other monthly debt payments) ÷ gross monthly income. The 28% / 36% / 43% thresholds are widely used US lender guidelines; exact limits vary by lender and loan program, and outside the US the equivalent limit (often called FOIR) is typically 40–50%. Use gross (pre-tax) income. See our methodology and editorial policy.

Frequently Asked Questions

What DTI do I need for a mortgage?

Many programs cap the back-end ratio at about 43%, and under 36% is comfortable. Some loans allow higher with strong credit or a large down payment.

Gross or net income?

Gross — lenders calculate DTI on pre-tax income.

Does rent count as housing?

Yes. Whatever you pay for your home — rent or a mortgage — is the housing figure in the front-end ratio.

Turn your DTI into a home budget

See the maximum home price your income and debts support using the 28/36 rule.

Open the affordability calculator →

Related calculators

Sources

The 28/36/43 DTI thresholds are widely used lender guidelines; actual limits vary by lender, program and country. This is guidance, not a lending decision. See our methodology and editorial policy.