Front-end and back-end ratios
The housing ratio compares housing costs alone with gross income. Total or back-end DTI also includes other required debt payments.
Loans
Debt-to-Income Ratio Calculator
Calculate your current and proposed debt-to-income ratio, housing ratio and monthly room under an entered DTI target. Use gross monthly income.
Proposed total debt-to-income ratio
36.67%
Current total DTI
31.67%
Housing-only ratio
25%
Proposed monthly obligations
$2,200.00
Monthly room under your target
-$40.00
The target ratio is your scenario assumption. Lenders vary in qualifying income, obligations and approval criteria; this result is not a lending decision.
Calculation method
Formula and method
A household with 6,000 gross monthly income and 1,900 debt payments has a 31.67% DTI. Adding a 300 payment increases it to 36.67%. The housing-only ratio is shown separately.
Detailed guide
Measure monthly debt against income
Enter gross income before tax and the required monthly payments on existing debts. Housing includes the payment components relevant to your comparison, such as principal, interest, property tax and insurance. Other obligations can include student loans, car loans and credit-card minimums.
A proposed payment is added to your current debts. When replacing an existing loan, remove the old payment from the current total first to avoid counting both payments.
Formula and method
DTI = total monthly debt payments / gross monthly income × 100
A household with 6,000 gross monthly income and 1,900 debt payments has a 31.67% DTI. Adding a 300 payment increases it to 36.67%. The housing-only ratio is shown separately.
Monthly room equals income × your target ratio minus all proposed debt payments. Negative room means the proposed obligations exceed the entered target by that amount.
Using the results
What to include
Use required payments rather than outstanding debt balances. A budget covers groceries and utilities too, but those are not usually debt obligations in this ratio.
Frequently asked questions
Is a 36% DTI always required?
No. It is the editable example target here. Approval limits and calculation rules depend on the lender and loan program.
Should I use take-home income?
For this DTI calculation, use gross monthly income before tax. Use take-home income in the budget calculator.
Can I test a new mortgage payment?
Yes. Enter the proposed payment as additional debt after removing any housing obligation that it will replace.
Data sources
These sources explain the concepts used in the calculation. Check the applicable contract or issuer documents for your actual parameters.
Updated: October 1, 2026
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