⚖️ Loan Readiness
Debt-to-Income
Ratio Calculator
Lenders use your DTI ratio to decide whether to approve your loan and at what rate. Know yours before you apply.
DTI ratio = monthly debt payments ÷ gross monthly income. Most mortgage lenders want total DTI under 43%. A DTI under 36% is considered healthy. This calculator shows both front-end DTI (housing only) and back-end DTI (all debts).
🏠 Housing Costs (Monthly)
💳 Other Monthly Debt Payments
Back-End DTI (All Debts)
0%
Front-end: 0% · Lender threshold: 43%
Front-End DTI
0%
Housing costs only ÷ income
Back-End DTI
0%
All debts ÷ income
Total Monthly Debt
$0
All minimum payments
Loan Readiness
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Lender assessment
DTI Thresholds by Loan Type
🏠Conventional mortgage (max 43-45% back)—
🏛️FHA mortgage (max 50% back with compensating factors)—
⭐Best rates (under 36% back)—
💳Personal loans (varies 35-50%)—
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Frequently Asked Questions
What is a good debt-to-income ratio? ▾
Under 36% back-end DTI is considered healthy by most lenders and financial advisors. 36-43% is acceptable for mortgage qualification. 43-50% is borderline — FHA loans may still be available but terms worsen. Above 50%, most conventional lenders won't approve, though some specialized products exist. For optimal loan terms and rates, aim for under 36%, ideally under 28% front-end (housing costs only).
Does DTI affect my credit score? ▾
DTI is not a direct factor in credit score calculations (FICO and VantageScore don't have access to your income). However, lenders absolutely calculate DTI during underwriting. A high DTI can lead to loan denial or higher rates even if your credit score is excellent. Reducing debt payments directly improves DTI. A raise or additional income source also helps — lenders typically want to see 2 years of stable income.
What counts toward DTI? ▾
Lenders count all recurring debt obligations that show on your credit report: mortgage/rent, auto loans, student loans, credit card minimum payments, personal loans, child support/alimony. They do NOT count: utilities, insurance, subscriptions, groceries, gas, or other living expenses. Cell phone and cable bills are usually not counted. Self-employment income is calculated differently — lenders typically use a 2-year average from tax returns.