Debt-to-Income (DTI) Calculator

How lenders read your DTI

Debt-to-income is your monthly debt payments divided by your gross monthly income, before taxes. Lenders use it to judge whether a new mortgage payment fits alongside what you already owe.

What counts as debt

Credit card minimums, auto loans, student loans, personal loans, child support, and alimony. Recurring bills such as utilities, phone, groceries, and insurance that is not part of your housing payment are left out.

What counts as income

Gross pay before deductions. Bonus, overtime, and commission usually need a two-year history to count. Self-employed income is generally averaged from two years of tax returns after business write-offs.

Front-end versus back-end

Front-end is the housing payment alone divided by income. Back-end adds every other monthly debt. Back-end is the number most programs qualify on.

How to move the number

You can raise income, lower other debts, or lower the housing payment. Paying off a small loan with a large monthly payment often helps more than paying down a large balance with a small payment, because DTI counts the payment, not the balance.

Frequently asked questions

What is a good DTI to buy a house?

Many programs look for 43% or less, though some allow higher with strong credit and reserves.

What is front-end vs back-end DTI?

Front-end is housing payment divided by income; back-end adds all other debts.

Does DTI include the new mortgage payment?

Yes. Back-end DTI uses the proposed housing payment including principal, interest, taxes, insurance, mortgage insurance, and any HOA dues.

Do student loans in deferment count?

Usually. Most programs use either the documented payment or a set percentage of the balance even when payments are deferred.

Can I be approved with a high DTI?

Sometimes. Strong credit, cash reserves, and a larger down payment act as compensating factors, and some programs allow ratios above 50%.