What is a good debt-to-income ratio?

Lower is generally easier to qualify with. Many mortgage resources discuss 36% as a comfortable reference and 43% as a common benchmark, but actual limits depend on the lender and loan program.

Should I use gross or take-home income?

Mortgage DTI is usually based on gross monthly income before taxes, not take-home pay.

Does DTI include utilities or groceries?

No. DTI typically focuses on recurring debt obligations and housing payment, not ordinary living expenses.

Debt-to-Income Ratio Calculator

Calculate front-end and back-end debt-to-income ratios from gross monthly income, proposed housing payment, and other monthly debts.

Gross monthly income ($)

Proposed housing payment ($/month)

Other monthly debts

Type

Name

Payment ($/month)

What debt-to-income ratio means

Debt-to-income ratio, or DTI, compares monthly debt payments with gross monthly income. Mortgage search intent usually expects both front-end DTI for housing costs and back-end DTI for housing plus other debts.

Gross monthly income before taxes.
Proposed housing payment, including mortgage payment and housing cost estimates.
Other monthly debts such as auto loans, student loans, credit cards, and support payments.
Front-end DTI, back-end DTI, and remaining income after the entered payments.

Planning estimate

Lenders can use different qualifying income, debt documentation, compensating factors, and loan-program limits.

Front-end and back-end DTI formulas

F r o n t - e n d D T I = \frac{H o u s in g p a y m e n t}{G r oss m o n t h l y in co m e} \cdot 100%

This focuses on the proposed housing payment.

B a c k - e n d D T I = \frac{H o u s in g p a y m e n t + O t h er m o n t h l y d e b t s}{G r oss m o n t h l y in co m e} \cdot 100%

This broader ratio is commonly used when evaluating mortgage affordability.

Frequently Asked Questions

Sources and References

Calculations are based on the listed reference sources. Links open in a new tab.

Updated: June 2, 2026

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