# Debt-to-Income (DTI) Calculator
Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments. It's the #1 factor lenders use to decide whether you can afford a loan — more important than your credit score for mortgage approval.
What's Your DTI?
Use our Debt Payoff Calculator to see all your debts in one place, then apply the formula below.
DTI Formula
<div class="bg-gray-100 p-3 rounded font-mono text-sm mb-4">DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100</div>
Example
Monthly debt payments: $2,100 (mortgage $1,400 + car $350 + cards $200 + student loans $150)
Gross monthly income: $6,500
DTI = 32.3% — Healthy range for a mortgage
DTI Guidelines by Loan Type
| DTI Range | Rating | Loan Eligibility |
|---|---|---|
| Under 36% | ✅ Excellent | Most loans at best rates |
| 36-43% | ⚠️ Manageable | May qualify with good credit |
| 43-50% | 🔶 Borderline | FHA loans possible, conventional may need compensating factors |
| Over 50% | 🔴 High | Most loans denied |
| Over 65% | 🚨 Critical | Mortgage approved almost never |
Getting Ready for a Home Purchase?
> 🇺🇸 If you're planning to buy a home, lower your DTI first. Paying off just one credit card can drop your DTI by 3-5 percentage points. Paying off a car loan can drop it by 10-15 points.
>
> For mortgage-ready credit: Check your reports at AnnualCreditReport.com (free weekly). Monitor your score with Experian.
>
> Check Your Mortgage Eligibility →
How to Lower Your DTI Fast
- Pay down credit cards — reduces minimum payments AND lowers DTI
- Increase income — side hustle, overtime, promotion
- Avoid new debt — no new car loans or credit cards before applying for a mortgage
- Refinance student loans — lower monthly payment = lower DTI
- Pay off a small debt entirely — removes one monthly payment from the equation
DTI vs Credit Score: Which Matters More?
For mortgages, DTI often matters MORE than credit score. A borrower with a 780 credit score and 55% DTI will be denied. A borrower with 680 credit and 28% DTI will be approved for a prime rate.
Front-End vs Back-End DTI
- Front-end = housing costs only (mortgage, tax, insurance, HOA) ÷ income
- Back-end = ALL debt payments (including housing) ÷ income
- Most lenders focus on back-end DTI
FAQs
Does rent count in DTI? Yes, for most lenders. Rent or mortgage is included in the calculation.
What about utilities, groceries, insurance? No — DTI only counts debt payments listed on credit reports, not living expenses.
Can I get a mortgage with 50% DTI? Possibly with FHA loans and compensating factors (high credit score, large down payment, cash reserves).