Loans & Credit

What Is Debt-to-Income Ratio (DTI)?

Debt-to-income ratio (DTI) compares a person's monthly debt payments with their gross monthly income, expressed as a percentage. Lenders, especially mortgage lenders, use it to estimate how much new debt a borrower can take on. DTI = total monthly debt payments ÷ gross monthly income × 100.

Front-End vs. Back-End DTI

Front-end DTI counts only housing costs (such as the mortgage payment, property tax, and insurance). Back-end DTI counts all monthly debt payments, including car loans, student loans, and minimum credit card payments.

Example

Monthly debt payments of 1,800 against gross monthly income of 6,000 give a DTI of 30%.

The 28/36 Guideline

A traditional US mortgage guideline refers to a front-end DTI of 28% and a back-end DTI of 36%, although actual lender limits vary by loan program.

🧮 Calculate It Yourself

Put Debt-to-Income Ratio (DTI) into practice with these free calculators — no sign-up, nothing stored.

⚖️ Debt-to-Income (DTI) Ratio Calculator The same ratio lenders use to evaluate your loan application. Calculate → 🏡 Home Affordability Calculator Find the home price range you can realistically afford. Calculate → 🚙 Car Affordability Calculator Find the car price that fits your budget without financial strain. Calculate →

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Gross Income Mortgage Credit Score Credit Utilization Ratio

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.