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Debt-to-income ratio calculator (DTI)

Calculate your debt-to-income ratio (DTI), front-end and back-end, against lender limits, and the debt cut or income rise that reaches your target.

Updated Checked against 5 worked examples

$
Before tax: salary, wages, bonuses, alimony received, pensions and other steady income.
$
For a mortgage, include property tax, homeowners insurance, HOA dues and mortgage insurance. Lenders use the payment on the home you are buying.
$
$
$
The minimum due on each statement, not the balance or what you choose to pay.
$
$
$
Any other recurring debt payment that shows on your credit report or court order.
%
Try
Debt-to-income ratio (back-end)
%
Debt-to-income ratio (back-end): 36.67 %
Shown to 2 decimal places, half-even
Housing ratio (front-end)
25.00%
Back-end band
Over 36%, up to 45%
Total monthly debt payments
$2,200.00
Gross monthly income
$6,000.00
Payment cut needed to reach the target
$40.00
Income increase needed to reach the target
$111.11
Gross monthly income needed at the target
$6,111.11
Largest housing payment within the target
$1,460.00

Debt payments of $2,200.00 take 36.67% of your $6,000.00 gross monthly income, above the 36% guideline; Fannie Mae accepts up to 45% on manually underwritten loans only with the credit score and reserves its eligibility matrix requires. Housing alone is 25.00%. To reach 36%, cut payments by $40.00 a month or raise gross income by $111.11 a month.

Back-end DTI against Fannie Mae limits

Up to 36%36–45%Over 50%0455070Target 36%36.67%

Gross monthly income

$6,000per month
Housing payment25.0%Other debt payments11.7%Left for tax and living costs63.3%
Debt payments and their share of income (5 rows)
DebtPer monthShare of income
Rent or mortgage payment$1,500.0025 %
Car loans and leases$350.005.83 %
Student loans$250.004.17 %
Credit card minimum payments$100.001.67 %
Total$2,200.0036.67 %
How it's calculated S

  1. Gross monthly income

    6,000.006{,}000.00

  2. Total monthly debt payments

    1,500.00+350.00+250.00+100.00=2,200.001{,}500.00 + 350.00 + 250.00 + 100.00 = 2{,}200.00

  3. Back-end DTI

    2,200.006,000.00×100=36.67%\frac{2{,}200.00}{6{,}000.00} \times 100 = 36.67\%

  4. Front-end (housing) ratio

    1,500.006,000.00×100=25.00%\frac{1{,}500.00}{6{,}000.00} \times 100 = 25.00\%

    Freddie Mac's guideline for manually underwritten loans is 28%; the CFPB suggests 28% to 35%.

  5. Reaching 36%

    cut=2,200.00−36%×6,000.00=40.00,income=2,200.0036%=6,111.11\text{cut} = 2{,}200.00 - 36\% \times 6{,}000.00 = 40.00,\qquad \text{income} = \frac{2{,}200.00}{36\%} = 6{,}111.11

    Either change alone reaches the target; a mix of smaller cuts and raises also works.

About the debt-to-income ratio calculator

Your debt-to-income ratio (DTI) is your monthly debt payments divided by gross monthly income. The back-end ratio counts every debt payment, housing included; the front-end ratio counts only the housing payment. Lenders read the back-end figure first: Fannie Mae's maximum is 36% for manually underwritten loans, 45% with credit-score and reserve requirements and 50% through its Desktop Underwriter system.

With the defaults, $6,000 of gross monthly income and $2,200 of debt payments give a back-end DTI of 36.67% and a front-end ratio of 25%. Cutting payments by $40 a month, or earning $111.11 more, brings the back-end ratio to 36%.

Use gross income before tax. Payments count, balances do not: a card with a $4,000 balance and a $100 minimum adds $100. Living costs such as utilities, groceries and insurance other than on the home stay out.

Worked examples

CFPB example: $2,000 of debts on $6,000

Gross income
6000
Income is
Per month
Rent or mortgage payment (per month)
1500
Car loans and leases (per month)
100
Student loans (per month)
0
Credit card minimum payments (per month)
0
Personal and other loans (per month)
0
Child support and alimony (per month)
0
Other monthly obligations (per month)
400
Target back-end DTI
36%
Debt-to-income ratio (back-end)
33.00%
Housing ratio (front-end)
25.00%
Total monthly debt payments
2,000.00

Checked against: CFPB, What is a debt-to-income ratio?: $1,500 mortgage + $100 auto + $400 other debts = $2,000 ÷ $6,000 gross = 33%

45% DTI brought to 36%

Gross income
5000
Income is
Per month
Rent or mortgage payment (per month)
1400
Car loans and leases (per month)
450
Student loans (per month)
300
Credit card minimum payments (per month)
100
Personal and other loans (per month)
0
Child support and alimony (per month)
0
Other monthly obligations (per month)
0
Target back-end DTI
36%
Debt-to-income ratio (back-end)
45.00%
Housing ratio (front-end)
28.00%
Payment cut needed to reach the target
450.00
Gross monthly income needed at the target
6,250.00
Income increase needed to reach the target
1,250.00
Back-end band
Over 36%, up to 45%

Checked against: Hand calculation: 2,250 ÷ 5,000 = 45%; 36% × 5,000 = 1,800 so cut 450; 2,250 ÷ 0.36 = 6,250

Annual salary of $90,000

Gross income
90,000
Income is
Per year
Rent or mortgage payment (per month)
2100
Car loans and leases (per month)
400
Student loans (per month)
0
Credit card minimum payments (per month)
0
Personal and other loans (per month)
0
Child support and alimony (per month)
0
Other monthly obligations (per month)
0
Target back-end DTI
36%
Gross monthly income
7,500.00
Debt-to-income ratio (back-end)
33.33%
Housing ratio (front-end)
28.00%
Payments you could add and stay at the target
200.00
Largest housing payment within the target
2,300.00
Payment cut needed to reach the target
not applicable

Checked against: Hand calculation: 90,000 ÷ 12 = 7,500; 2,500 ÷ 7,500 = 33.33%; 36% × 7,500 = 2,700, less 2,500 = 200 of room; 2,700 − 400 = 2,300

Above Fannie Mae's 50% maximum

Gross income
4000
Income is
Per month
Rent or mortgage payment (per month)
1600
Car loans and leases (per month)
300
Student loans (per month)
200
Credit card minimum payments (per month)
150
Personal and other loans (per month)
0
Child support and alimony (per month)
0
Other monthly obligations (per month)
0
Target back-end DTI
50%
Debt-to-income ratio (back-end)
56.25%
Back-end band
Over 50%
Payment cut needed to reach the target
250.00
Income increase needed to reach the target
500.00

Checked against: Hand calculation: 2,250 ÷ 4,000 = 56.25%; 50% × 4,000 = 2,000, cut 250; 2,250 ÷ 0.5 = 4,500, raise 500

Questions

How do you calculate debt-to-income ratio?

Add up your monthly debt payments and divide by your gross monthly income, then multiply by 100. The CFPB's example: a $1,500 mortgage payment, a $100 auto loan and $400 of other debts total $2,000; on $6,000 of gross monthly income the DTI is 33%. The front-end ratio uses only the housing payment, 25% here.

What is a good debt-to-income ratio?

36% or less. The CFPB suggests keeping total debt payments at 36% of gross income or below and housing at 28% to 35%, and Freddie Mac's guideline for manually underwritten loans is 28% for housing and 36% in total. Fannie Mae accepts up to 45% with credit-score and reserve requirements and up to 50% through Desktop Underwriter.

What is the maximum DTI for a mortgage?

50% for a conventional loan approved through Fannie Mae's Desktop Underwriter, and 45% for a manually underwritten one that meets the credit-score and reserve requirements (Selling Guide B3-6-02). FHA's manual-underwriting limits without compensating factors are 31% for housing and 43% in total. The CFPB notes some lenders go to 43% or higher.

How can I lower my debt-to-income ratio?

Cut monthly payments or raise gross income. To reach a target, the most your debts can be is target × income, and the income you need is debts ÷ target. With $2,250 of payments on $5,000 a month (45%), reaching 36% takes cutting payments by $450 or raising income by $1,250 a month. Paying off a loan outright removes its whole payment, which usually moves the ratio fastest.

How accurate is the debt-to-income ratio calculator?

Accuracy depends on your inputs and the method's assumptions. Decimal arithmetic uses 50 significant digits, but estimates, numerical methods and source data can be less precise; the displayed rounding does not remove those limits. It is checked against 5 worked examples whose answers come from independent sources; for example, “CFPB example: $2,000 of debts on $6,000” is checked against CFPB, What is a debt-to-income ratio?: $1,500 mortgage + $100 auto + $400 other debts = $2,000 ÷ $6,000 gross = 33%.

Where does the method come from?

Consumer Financial Protection Bureau: What is a debt-to-income ratio?; Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios; Freddie Mac Single-Family Seller/Servicer Guide 5401.1 and 5401.2: housing expense and debt payment-to-income ratios; CFPB, Your Money, Your Goals toolkit: debt-to-income calculator; HUD Single Family Housing Policy Handbook 4000.1 (FHA qualifying ratios).

About this calculator

DTIback=∑monthly debt paymentsgross monthly income×100,DTIfront=housing paymentgross monthly income×100\text{DTI}_{\text{back}} = \frac{\sum \text{monthly debt payments}}{\text{gross monthly income}} \times 100,\qquad \text{DTI}_{\text{front}} = \frac{\text{housing payment}}{\text{gross monthly income}} \times 100

Sources

  1. Consumer Financial Protection Bureau: What is a debt-to-income ratio?
  2. Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios
  3. Freddie Mac Single-Family Seller/Servicer Guide 5401.1 and 5401.2: housing expense and debt payment-to-income ratios
  4. CFPB, Your Money, Your Goals toolkit: debt-to-income calculator
  5. HUD Single Family Housing Policy Handbook 4000.1 (FHA qualifying ratios)

For planning only. Lenders, tax authorities and markets apply their own rounding, fees and rules; confirm figures with them before you commit.

Checked against references

5 worked examples with independently sourced answers ship with this calculator. They run in the test suite; you can run them here too.

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