DTI does not include most living expenses
Groceries, utilities, entertainment, and routine bills are usually excluded, even though they still matter for your real budget.
Debt-to-Income Ratio Calculator
Enter gross income, rent or proposed mortgage costs, property charges, and recurring monthly debts to see how lenders may assess your borrowing ability.
Privacy and limitations: calculations run in your browser and no entries are submitted to Starlight Tools. Results are educational estimates only; lenders may calculate income, debts, student loans, and mortgage program limits differently. Last reviewed: June 9, 2026.
Inputs
Before tax. If you pick “annual”, we’ll convert to monthly.
Use current rent or the proposed mortgage payment. Mortgage estimates often include principal and interest, property taxes, homeowners insurance, PMI or mortgage insurance, and HOA dues.
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Results
Front-end DTI (housing / income)
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Back-end DTI (housing + all debts / income)
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Totals
— income / month
— housing • — other debts
DTI = payments ÷ gross income. Lower is generally easier for affordability checks.
DTI interpretation
Range
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What lenders may infer
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Next best action
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Many borrowers use 28% as a front-end housing target. A back-end DTI of 36% or less is generally strong, 36% to 49% may need improvement, and 50% or higher is often a red flag. Some mortgage programs may allow higher ratios depending on credit, reserves, down payment, and loan type.
What monthly payment fits my target DTI?
Max total monthly debt—
Room after other debts—
Room after current total—
"Room after other debts" estimates how much total housing or new payment could fit after the recurring debts listed above. Lender rules may be more restrictive.
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Debt-to-Income Ratio Formula
Front-end DTI = monthly housing costs / gross monthly income x 100
Back-end DTI = (monthly housing costs + other monthly debt payments) / gross monthly income x 100
Front-end DTI focuses on housing. Back-end DTI adds recurring debt payments, which is why it is often the more important ratio for mortgage approval and other borrowing decisions.
How to calculate DTI
- Enter gross monthly income, or enter annual income and convert it to a monthly amount.
- Add rent or proposed mortgage principal and interest, property taxes, homeowners insurance, PMI or mortgage insurance, and HOA dues.
- Add recurring monthly debts such as credit card minimums, auto loans, student loans, personal loans, child support, and alimony.
- Divide housing costs by gross monthly income for front-end DTI; divide housing plus other debts by gross monthly income for back-end DTI.
- Interpret the percentage using common ranges such as 28% front-end, 36% or less generally strong, 36% to 49% needs improvement, and 50% or higher a red flag.
Worked DTI Example
Suppose gross monthly income is $6,000. The proposed housing cost is $1,800, including mortgage principal and interest, property taxes, homeowners insurance, and HOA dues. Other monthly debts are $620: a $320 auto loan, $180 student loan payment, and $120 in credit card minimum payments.
Front-end DTI
$1,800 / $6,000 x 100 = 30.0%
Back-end DTI
($1,800 + $620) / $6,000 x 100 = 40.3%
DTI Rules and Lender Context
DTI uses gross income
Lenders generally compare monthly debt payments with income before taxes and deductions, not take-home pay.
Rent may be handled differently
Rent is useful for estimating current front-end DTI. For a mortgage application, lenders often evaluate the proposed mortgage payment instead.
Student loan treatment can vary
Some lenders use the reported payment. Others may calculate a payment from the loan balance when no qualifying payment is listed.
DTI is only one approval factor
Credit score, income stability, assets, down payment, cash reserves, loan type, and property details can all affect approval.
Ways to lower DTI
Reduce required monthly payments, avoid new debt, choose a lower housing payment, or increase qualifying income before applying.
Debt-to-Income Ratio FAQ
What is a good debt-to-income ratio?
A back-end DTI of 36% or less is generally strong. Many borrowers also watch a 28% front-end housing target. A back-end DTI from 36% to 49% may need improvement, while 50% or higher is often a red flag.
What counts as monthly debt?
Include credit card minimum payments, auto loans, student loans, personal loans, child support, alimony, and other recurring debt obligations.
What is excluded from DTI?
Do not include groceries, utilities, health insurance, entertainment, and other non-debt living expenses in a standard DTI calculation.
Does rent count in DTI?
Rent can be used for an estimate of current housing DTI. For mortgage approval, lenders may focus on the proposed mortgage payment and related housing costs instead of current rent.
Is DTI based on gross or net income?
DTI is normally based on gross income before taxes and deductions, not net or take-home income.
How does DTI affect mortgage approval?
Lenders use DTI to judge whether your income can support the proposed housing payment plus existing debt. It is considered alongside credit, assets, down payment, reserves, and loan type.
Can I be denied for a high DTI?
Yes. A high DTI can lead to denial or a smaller approved loan amount, although some programs allow higher ratios for borrowers with strong compensating factors.
How can I lower my DTI quickly?
Focus on reducing required monthly debt payments, avoiding new debt, refinancing only when it safely lowers payment, choosing a lower housing payment, or increasing qualifying income.