Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments, and it is one of the first numbers a mortgage lender checks. With $6,000 of gross monthly income, a $1,500 housing payment and $800 of other debt payments, your front-end DTI is 25.0% and your back-end DTI is 38.3%: inside the FHA, VA and USDA limits but above the 36% used by the 28/36 rule and by Fannie Mae for manually underwritten loans.
Debt-to-Income Ratio Calculator
Front-end and back-end DTI with lender limits · Updated October 13, 2026
- Front-end DTI (housing only)
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- Monthly debt payments
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- Gross monthly income
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- Room under 36%
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- Room under 43%
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- Yearly income for a 36% DTI
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| Guideline | Limit | You |
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Where two limits are shown, the first is for housing and the second for all debts. Lenders may approve more with strong credit, savings or other compensating factors.
How DTI is calculated
- Back-end DTI = all monthly debt payments ÷ gross monthly income × 100. This is the number most people mean by DTI.
- Front-end DTI (housing ratio) = housing payment ÷ gross monthly income × 100.
- Gross income is pay before taxes and deductions. For a yearly salary, divide by 12.
Count the minimum payments that appear on your credit report or that you are legally required to pay: rent or the full mortgage payment (principal, interest, property tax, homeowners insurance, mortgage insurance and HOA dues), car loans and leases, student loans, credit card minimums, personal loans, other mortgages, and child support or alimony. Living costs such as utilities, groceries, phone bills, car insurance and subscriptions are not part of DTI.
DTI limits used by lenders
| Loan type or guideline | Housing (front-end) | All debts (back-end) |
|---|---|---|
| 28/36 rule of thumb | 28% | 36% |
| Conventional, Fannie Mae, manual underwriting | – | 36%, up to 45% with required credit score and reserves |
| Conventional, Fannie Mae, Desktop Underwriter | – | Up to 50% |
| FHA, manual underwriting, no compensating factors | 31% | 43% |
| FHA, manual, with compensating factors | Up to 40% | Up to 50% |
| VA | – | 41% benchmark; residual income also counts |
| USDA guaranteed | 29% | 41% |
The 28/36 rule isn’t a regulation, just a long-standing rule of thumb for an affordable home: keep housing under 28% of gross income and all debts under 36%. Real loan limits are often higher, especially when an automated underwriting system finds strong credit, a larger down payment or savings. FHA manual underwriting lets the ratios rise to 37/47 with one compensating factor and 40/50 with two, such as cash reserves or only a small increase in housing cost. VA loans look at residual income as well, and a DTI above 41% can still be approved when the rest of the file is strong.
Worked examples
- Comfortable: $9,000 a month, $2,000 mortgage, $300 car loan and $50 card minimum. Front-end 22.2%, back-end 26.1%: inside every guideline.
- Annual salary: $84,000 a year is $7,000 a month. With $1,900 of rent, a $350 car payment and $75 of card minimums, front-end is 27.1% and back-end 33.2%.
- Close to the FHA line: $5,500 a month, $1,700 of housing and $650 of other debts. Back-end 42.7% fits FHA’s 31/43 standard (front-end 30.9%) but not VA’s 41% benchmark or USDA’s 41%.
- Stretched: $5,000 a month, $1,800 of housing and $1,400 of other debts gives 64.0%, above every limit, including the 50% automated maximum.
How to lower your DTI
- Pay off a small balance completely. Removing a $150 minimum payment lowers DTI by 2.5 points on $6,000 of monthly income.
- Avoid new car loans or store cards in the months before a mortgage application.
- Look for a less expensive home or a larger down payment, which lowers the housing payment and both ratios.
- Add a co-borrower’s income, or document overtime, bonus or self-employment income that the lender can count.
- Refinancing debt to a longer term lowers the monthly payment, though it usually costs more interest overall.
FAQ
What is a good debt-to-income ratio?
Under 36% is the comfortable target used by the 28/36 rule and by Fannie Mae for manually underwritten loans. 43% is FHA’s standard limit without compensating factors, and 50% is the most Fannie Mae accepts through its automated system. A lower ratio leaves more room for savings and emergencies.
Does rent count in DTI?
When you rent, lenders and landlords usually include rent in your current DTI. When you apply for a mortgage, the new mortgage payment replaces the rent in the calculation.
Is DTI part of my credit score?
No. Credit reports don’t include your income, so scores can’t measure DTI. They do look at credit utilization, the share of your card limits you’re using, which is a different number.
Does a student loan with a $0 payment count?
It can. Mortgage programs have their own rules for loans on income-driven plans or in deferment, and some use a set percentage of the balance instead of $0. Ask the lender which figure they will use and enter that payment.
Related calculators
- Home Affordability CalculatorTurn your DTI room into a home price
- Mortgage CalculatorMonthly payment with taxes and insurance
- Credit Card Payoff CalculatorClear card balances to lower your DTI
Sources
- Consumer Financial Protection Bureau: What is a debt-to-income ratio?
- Fannie Mae Selling Guide B3-6-02: Debt-to-income ratios
- HUD Single Family Housing Policy Handbook 4000.1, II.A.5.d.viii: Approvable ratio requirements (manual) · revised August 12, 2026
- 38 CFR 36.4340: VA underwriting standards
- 7 CFR 3555.151: USDA eligibility requirements, repayment ratios
- Bankrate: What is the 28/36 rule?
- The Mortgage Reports: What is the 28/36 rule?
Figures current as of October 13, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
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