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Debt-to-Income Ratio Calculator

See what share of your income goes to debt payments, for housing alone and for all your debts, and how that compares with common lending guidelines.

Level: Grades 6–7

Printable worksheet

Debt-to-Income Ratio Calculator

Know the answer you need? Pick an input to work backward.

Inputs

Include all regular income: salary, wages, and steady self-employment, pension or other income.

Rent, or the full mortgage payment including property tax, insurance and HOA dues.

Child support, alimony, other installment loans. Not utilities, groceries or insurance.

Result

Debt-to-income ratio (back-end)

36.08%

Monthly debt payments of $2,345.00 on $6,500.00 of gross monthly income give a back-end DTI of 36.08% and a front-end ratio of 25.38%.

Housing ratio (front-end)
25.38%
Gross monthly income
$6,500.00
Total monthly debt payments
$2,345.00
Income left after debt payments
$4,155.00Before taxes and everyday living costs.
Front-end vs 28%
At or below the 28% guideline
Back-end vs 36%
Above the 36% guideline
Back-end vs 43%
At or below the 43% guideline

See the step-by-step solution ↓

Your ratios against common lending guidelines (rules of thumb, not lender decisions)
Your ratios against common lending guidelines (rules of thumb, not lender decisions)
GuidelineYour ratioCompared with the guidelinePayment at the guidelineRoom left (negative = over)
Front-end (housing) 28% guideline25.38%At or below$1,820.00$170.00
Back-end (total debt) 36% guideline36.08%Above$2,340.00-$5.00
Back-end (total debt) 43% guideline36.08%At or below$2,795.00$450.00

Step-by-step solution

  1. Add up all your monthly debt payments (housing, car loans, student loans, credit cards)

    $1,650.00+$380.00+$220.00+$95.00=$2,345.00

  2. Find the front-end ratio: divide your housing payment by your monthly income, then multiply by 100 to get a percent

    $1,650.00$6,500.00×100=25.3846%

  3. Find the back-end ratio the same way, using all your monthly debt payments

    $2,345.00$6,500.00×100=36.0769%

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

Find out how much of your income goes to debt payments each month. That share is your debt-to-income ratio, or DTI. It uses your gross income, which is your pay before taxes. Lenders use it to judge how much room your budget has for a new loan. It's one of the main numbers they check when you apply for a mortgage.

There are two versions. The front-end ratio counts only your housing payment. The back-end ratio counts every monthly debt payment, housing included. This calculator works out both and shows the working. Then it compares them with the rule-of-thumb limits you'll often hear: 28% for housing, 36% for total debt, and 43% as a common upper limit. These are guidelines, not lending decisions. Each lender and loan program sets its own rules.

Where it's used

Why this math matters outside the classroom:

  • Loan applications. Monthly debt payments of $1,800 on a $6,000 gross monthly income give a debt-to-income ratio of 30%.
  • Front-end ratio. Lenders look at housing costs alone, such as $1,500 of a $6,000 income, which is a 25% front-end ratio.
  • Before borrowing more. Borrowers add a proposed car payment to existing debts to see how the ratio would change.
  • Paying down debt. Clearing a $300 monthly card payment lowers total monthly debt from $1,800 to $1,500 on the same income.

How to use it

  1. Enter your gross income, before tax, as a monthly or yearly figure.
  2. Enter your monthly housing payment. That's your rent, or your full mortgage payment including property tax, insurance and any HOA dues.
  3. Enter the minimum monthly payments on your other debts. Leave blank any that don't apply to you.
  4. Read your back-end and front-end ratios, and the table that compares them with the guidelines.

What the inputs mean

Gross income (before tax)
Gross means before taxes and other deductions come out of your pay. Some income changes from year to year, such as bonuses, commission or self-employment earnings. Lenders usually average that kind of income over one to two years.
Housing payment (monthly)
Planning to buy? Enter the expected new payment instead of your current rent. Then you'll see the ratios a lender would look at.
Credit card minimum payments
Use the minimum payment on each statement, not what you actually pay. Add the cards together.
Other debt payments
Court-ordered payments and other installment debts (loans you repay in set amounts) count. Everyday bills such as utilities, phone, groceries and insurance premiums aren't debts for DTI.

Formula and method

front-end DTI = housing payment ÷ gross monthly income × 100
back-end DTI = total monthly debt payments ÷ gross monthly income × 100
payment at a guideline = gross monthly income × guideline% ÷ 100

Both ratios divide a monthly payment by your gross monthly income, then multiply by 100 to make a percent. The front-end ratio uses only housing. The back-end ratio adds every regular debt payment to housing, so it's always at least as big.

The table turns each guideline into dollars: the most you could pay each month and still stay at that ratio. The room column takes away what you pay now. A negative number shows how far over the guideline you are.

Worked example

Gross income is $6,500 a month. Rent is $1,650, a car payment is $380, a student loan payment is $220, and credit card minimums total $95.

  1. Total monthly debt: $1,650 + $380 + $220 + $95 = $2,345.00.
  2. Front-end ratio: $1,650 ÷ $6,500 × 100 = 25.38%.
  3. Back-end ratio: $2,345 ÷ $6,500 × 100 = 36.08%.
  4. At 36%, the total payments would be $2,340.00, so this budget is $5.00 over. At 43%, there's $450.00 of room.

Result: The back-end DTI is 36.08%, just above the 36% guideline and below 43%. The front-end ratio of 25.38% is under the 28% guideline.

Understanding the result

A lower DTI means more of your income is free for savings, living costs and surprise expenses. As a general pattern, lenders are comfortable with ratios in the low 30s or below. The high 30s to low 40s get a closer look. Above the low 40s, borrowing gets harder, although some programs allow more if you have strong credit or savings.

There are two ways to lower your DTI. You can cut your monthly payments, for example by paying off a small balance or refinancing to a lower payment. Or you can show more income on paper. Paying off a debt completely removes its payment from the calculation.

Assumptions and limitations

  • Payments are the required monthly minimums.
  • Income is gross, steady and expected to continue.
  • The 28%, 36% and 43% figures are general rules of thumb. They aren't the requirements of any particular lender or program.
  • Lenders have their own rules for which income counts and how they treat some debts, such as paused (deferred) student loans or loans you co-signed. So their figure may differ.
  • DTI is only one factor. Your credit history, savings, down payment and job also affect a lending decision.
  • This is a planning tool, not a loan approval or financial advice.

Frequently asked questions

What is a good debt-to-income ratio?

Lower is better. Many budgeting guides suggest keeping total debt payments at or below about 36% of gross income, with housing at or below about 28%. Loan programs differ. Some allow higher ratios when other parts of your application are strong.

Does DTI use gross or net income?

Gross income, before taxes and payroll deductions. Your take-home pay is smaller, so the ratio makes your budget look less tight than it really is. For your own budgeting, it can help to run the numbers again with your take-home (net) pay.

Which payments count as debt?

Regular payments that show up on your credit report or that you're legally required to make. That means rent or mortgage, car loans and leases, student loans, credit card minimums, personal loans, and court-ordered support. Utilities, phone plans, groceries, subscriptions and insurance premiums are normally left out. The exception is insurance or property tax that's part of your mortgage payment.

What is the difference between front-end and back-end DTI?

The front-end ratio looks only at housing costs. It asks whether the home itself fits your income. The back-end ratio includes housing plus all your other debts, so it shows your overall debt load. Mortgage lenders often look at both.

How this calculator is checked

Method: Standard definition of debt-to-income: monthly debt payments ÷ gross monthly income; front-end uses housing only. The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-18. Found a problem? Tell us.

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