This DTI calculator computes your debt-to-income ratios the way mortgage lenders do: the front-end (housing) ratio and the back-end ratio that counts all monthly debt payments against your gross monthly income.
Front-End, Back-End, and What Counts
Front-end DTI = housing ÷ gross income (the classic guideline is ≤ 28%). Back-end DTI adds every recurring debt payment a credit report shows: auto, student and personal loans, credit-card minimums (not balances), support obligations. It excludes utilities, groceries, insurance premiums and subscriptions — lenders underwrite reported debts, not your whole cost of living, which is why a "passing" DTI can still feel tight in a real budget. The companion housing metric is LTV; the card payments that count here shrink fastest with a plan like our Credit Card Payoff Calculator's. Part of our Finance Calculators collection.
Worked Example (Verified)
$6,500/month gross income; housing $1,850; auto $420; card minimums $150; other debts $200:
- Total debts: $2,620 → back-end DTI = 40.3% — inside the classic 43% Qualified Mortgage ceiling, outside the ≤36% comfort zone
- Front-end: 1,850 ÷ 6,500 = 28.5% — right at the traditional housing guideline
- Headroom to 43%: $175/month of additional debt capacity — eliminating the $420 auto payment would swing DTI to 33.8% and transform the application
Moving Your Number Before Applying
- Pay down card balances: lenders use the minimum payment printed near application time — a balance paid off last month still counts if the statement hasn't updated (ask about rapid rescoring).
- Debts with <10 payments left are sometimes excluded by underwriting guidelines — a nearly-finished loan may not need prepaying.
- Documented income is what counts: bonuses, overtime and side income typically need a 2-year history to qualify.
- Being a co-signer counts the full payment against you unless you can document 12 months of the other party paying.
Related Tools
- LTV Calculator — the other mortgage ratio
- Credit Card Payoff Calculator — shrink the card slice
- Finance Calculators — the full collection
Frequently Asked Questions
How is DTI calculated?
Total monthly debt payments ÷ gross (pre-tax) monthly income × 100. The example household: $2,620 ÷ $6,500 = 40.3% back-end DTI; housing alone gives the 28.5% front-end figure.
What is a good DTI for a mortgage?
≤36% back-end is the comfort zone with the widest program choice and best pricing; ≤43% satisfies the traditional Qualified Mortgage standard; some programs stretch toward 50% with strong compensating factors.
Does DTI use gross or net income?
Gross — before taxes and deductions. It flatters the ratio relative to your take-home budget, one more reason to keep your own stricter target (many households aim for back-end ≤36% measured the lender way).
Do credit card balances count, or payments?
Payments — specifically the minimum payment on the statement (often ~1–3% of the balance). A $10,000 balance might count as only ~$200/month against DTI, which is why DTI understates the real burden of revolving debt.
Are utilities, rent-to-own or BNPL counted?
Utilities and insurance: no. Rent appears in the front-end ratio when you're buying (your future housing payment is used). Buy-now-pay-later debts generally don't appear on credit reports yet — a gap between lender math and household reality worth remembering.
Is this DTI calculator free?
Yes — free, instant, no sign-up.