LazyTools

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⚖️ Debt-to-Income (DTI) Calculator

Enter your monthly housing payment, other debts and gross monthly income to get your front-end and back-end DTI ratios, with what lenders look for.

Back-end DTI (all debt)

33.3%

Front-end DTI (housing only)

25%

Healthy — within the 36% guideline

Debt-to-income ratio is your monthly debt payments divided by gross monthly income. The front-end ratio counts only housing; the back-end counts all debt (housing + loans + minimum card payments). Lenders like the back-end at or below 36%, and the "qualified mortgage" rule caps it near 43%. This is educational, not lending or financial advice. 🔒 In your browser.

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How the debt-to-income (dti) calculator works

Debt-to-income ratio is your monthly debt payments divided by your gross (pre-tax) monthly income, as a percentage. The front-end ratio counts housing only (rent or mortgage, plus taxes and insurance); the back-end ratio counts all recurring debt — housing plus car loans, student loans, and minimum credit-card payments. The tool computes both and flags where they fall against common lender thresholds.

A widely used guideline is 28/36: housing at or below 28% of gross income and total debt at or below 36%. The "qualified mortgage" rule generally caps back-end DTI near 43%. Lower is safer and can improve loan terms. This is educational information, not lending or financial advice.

Frequently asked questions

How do you calculate debt-to-income ratio?

Add up your monthly debt payments and divide by your gross monthly income, then multiply by 100. If you pay $2,000 in debts on $6,000 income, your DTI is 33%.

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

Front-end counts only housing costs against income; back-end counts all debt payments (housing plus loans and minimum card payments). Lenders usually weigh the back-end ratio most heavily.

What is a good debt-to-income ratio?

Generally 36% or below (back-end) is considered healthy, and many lenders prefer housing (front-end) at or under 28%. Above 43% makes qualifying for a mortgage harder.

Does DTI use gross or net income?

Gross income — your pay before taxes and deductions. Using net (take-home) income would overstate your ratio compared with how lenders calculate it.

What debts count toward DTI?

Recurring monthly obligations: rent or mortgage (with taxes and insurance), car and student loans, minimum credit-card payments, and other loan payments. Utilities, groceries and other variable spending are not counted.

Educational information, not financial advice. These calculators use standard formulas with the figures you enter; results are illustrations, not guarantees. For decisions about your money, consult a qualified, regulated financial professional.

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