Calculate your debt-to-income ratio instantly. See front-end and back-end DTI, loan qualification, and step-by-step formula for FHA, VA, and conventional loans.
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Your debt-to-income (DTI) ratio is one of the most important numbers in personal finance. It compares your total monthly debt payments to your gross monthly income, expressed as a percentage. Lenders use it as a key metric to assess your ability to manage monthly payments and repay borrowed money. To calculate your DTI, simply divide your total monthly debt obligations by your gross monthly income and multiply by 100. This calculator shows both front-end DTI (housing costs only) and back-end DTI (all debts), plus loan qualification guidance for FHA, VA, conventional, USDA, and jumbo mortgages.
Your debt-to-income ratio (DTI) is a personal finance metric that compares your total monthly debt payments to your gross monthly income before taxes. It reflects how much of each dollar you earn goes toward debt obligations. Debts that count toward DTI include mortgage or rent payments, auto loans, student loans, personal loans, credit card minimum payments, alimony, and child support. Items NOT counted include utility bills, cell phone bills, groceries, health insurance premiums, car insurance, and streaming subscriptions. Lenders rely heavily on DTI because it indicates your financial capacity to take on new debt — the lower your ratio, the stronger your borrowing position.
Formula
DTI = (Total Monthly Debts ÷ Gross Monthly Income) × 100Know if your DTI meets FHA (43%), conventional (43–50%), or VA (41%) requirements before applying, so you avoid surprises during the underwriting process.
See which debts to eliminate first to improve your ratio. Even paying off a small credit card balance can meaningfully lower your DTI and improve loan eligibility.
Understand how taking on new debt — like a car loan or mortgage — would shift your DTI. Test different payment amounts to see their impact before committing.
Track your DTI regularly as you pay down debts or increase income. A declining ratio signals improving financial health and stronger borrowing power.
Lenders heavily weight DTI in loan approvals. Knowing your ratio gives you a strategic advantage — you can take targeted steps to lower it before applying for credit.
Check your DTI before applying for a mortgage to know which loan types (FHA, VA, conventional) you qualify for and at what terms.
Verify your DTI still meets lender requirements when refinancing your mortgage at a new rate, especially if you've taken on new debts since your original loan.
See how consolidating multiple debts into one monthly payment could change your DTI, helping you decide if consolidation is the right strategy.
Calculate how adding a new car payment would affect your ratio before visiting the dealership, so you know exactly what you can afford.
Use DTI monitoring as part of your regular financial wellness routine, tracking improvement as you pay down debts or negotiate salary increases.
A DTI under 36% is generally considered good by most lenders. Under 20% is excellent, indicating very low debt relative to income. For mortgage qualification, most conventional loans accept up to 43%, FHA loans up to 43% (sometimes 57% with compensating factors), and VA loans use 41% as a guideline with no hard cap. The lower your DTI, the better your interest rates and approval odds.
Divide your total monthly debt payments by your gross monthly income, then multiply by 100. For example, if you earn $5,000/month and pay $1,500 in debts (mortgage, car, student loans, credit cards), your DTI is ($1,500 ÷ $5,000) × 100 = 30%. Include all recurring debt obligations but exclude utilities, groceries, and insurance premiums.
Your debt-to-income ratio is a personal finance metric that compares your total monthly debt payments to your gross monthly income. Lenders use it to assess your ability to manage monthly payments and repay borrowed money. A lower DTI indicates less financial strain and stronger borrowing capacity.
For conventional mortgages, lenders typically require a DTI of 43% or lower, though some allow up to 50% with strong credit and reserves. FHA loans accept up to 43% (57% in some automated approvals). VA loans use 41% as a benchmark but have no strict cap. USDA loans typically require 41% or lower. The lower your DTI, the more favorable your mortgage terms.
FHA loans generally require a back-end DTI of 43% or lower and a front-end (housing-only) DTI of 31% or lower. However, with compensating factors such as significant cash reserves, minimal increase in housing payment, or strong residual income, FHA automated underwriting may approve DTIs up to 57%.
Your DTI ratio does not directly affect your credit score — credit bureaus don't use income data in scoring models. However, high debt balances increase your credit utilization ratio (which does impact scores), and high DTI often correlates with missed payments. While they are separate metrics, improving your DTI by paying down debt typically improves your credit score as well.
Monthly obligations that count toward DTI include: mortgage or rent payments, auto loans, student loans, personal loans, credit card minimum payments, alimony, child support, and any co-signed loan obligations. Items NOT included: utility bills, cell phone bills, groceries, health insurance premiums, car insurance, streaming subscriptions, and other non-debt expenses.
VA loans use 41% DTI as a guideline, but unlike conventional or FHA loans, there is no strict DTI cap. Instead, VA lenders evaluate residual income — the money left over after paying all debts and essential expenses. Borrowers with adequate residual income can qualify with DTI ratios well above 41%, making VA loans one of the most flexible options for veterans.