Debt-to-Income Ratio Calculator
Debt to income on both ratios lenders actually use. The front end covers housing alone and the back end covers all debt, with different limits, so a borrower who clears the ratio they know about can still fail the one they do not.
Also called: dti calculator, debt to income ratio.
35% of gross income goes to debt, 35% with the payment you are considering. Enter the housing portion separately to see the front end ratio, which lenders test against a tighter limit than the headline one. You could add 9600 a month before reaching the 43% limit.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
The back end ratio divides all monthly debt payments by gross monthly income and is the figure usually quoted, commonly limited to 43 percent. The front end covers housing alone against a tighter limit, often 28. Both use gross rather than net income, which is why the ratio looks more comfortable than the money feels: a 43 percent gross ratio can be well over half of take-home pay. Adding a proposed payment shows where a new loan lands, and the headroom figure is what could still be borrowed before the limit binds.
lenders apply both and decline on either, so passing one is not passing- D
- Debt payments
Method and limits
What it assumes
- Gross income before tax, which is the basis lenders use.
What it deliberately does not model
- Limits vary by lender, loan programme and compensating factors like reserves or credit score.
- Some lenders count the minimum payment on revolving debt and others a percentage of the balance.
- The ratio ignores tax and living costs entirely, so it measures lender risk rather than affordability.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Why are there two ratios?
- Because lenders test housing separately from total debt. The front end limit is tighter, around 28 percent, and a borrower can clear the 43 percent back end while failing it.
- Is this on gross or net income?
- Gross, which is what lenders use and why the ratio looks more comfortable than the money feels. A 43 percent gross ratio can be well over half of take-home pay.