⚖️ DTI Ratio Calculator
Calculate front-end and back-end DTI, maximum borrowing power, multi-country standards, and DTI improvement plan.
DTI Parameters
📝 Advanced
Stress Test
Back-End DTI (Total) · United States
38.3%
High (36-43%)
DTI Improvement Plan
DTI Trend Projection
How DTI Ratio Works
Formula
Front-End DTI = Housing Cost ÷ Gross Income × 100% Back-End DTI = Total Debt Payments ÷ Gross Income × 100% 28/36 Rule: Housing ≤28%, Total ≤36%
📊 Example
• $6,000 monthly income, $1,500 housing, $800 other debts: Front-end = 25%, Back-end = 38%
• To qualify for conventional loan (36% max), reduce debts by $120/mo or increase income by $335/mo
• With $1,200 rental income added: effective income = $7,200, DTI drops to 32%
❓ FAQ
What is a good DTI ratio?＋
Below 36% is generally good. Front-end DTI (housing only) should be under 28%. Back-end DTI (all debts) under 36% for conventional loans, up to 43% for FHA.
How do lenders use DTI?＋
Lenders use DTI to assess your ability to repay. Conventional loans typically cap at 36% back-end. FHA allows up to 43-50%. VA loans are more flexible.
What debts are included in DTI?＋
Housing costs (PITI), credit card minimums, auto loans, student loans, personal loans, alimony, child support. Utilities and groceries are not included.
How can I lower my DTI quickly?＋
Pay off small debts, increase income, refinance high-rate loans, add a co-applicant, or include rental income. Use our improvement plan for a step-by-step guide.
What is the 28/36 rule?＋
28% of gross income for housing, 36% for total debt. This is the conventional mortgage guideline. Some loan types have different limits.
Does DTI affect credit score?＋
DTI itself isn't on credit reports, but high DTI correlates with credit stress. Lowering DTI by paying off credit cards can significantly boost your score.
How is self-employed DTI calculated?＋
Lenders typically use 2-year average of tax returns. Net business income (after deductions) is used, which often makes DTI appear higher for self-employed borrowers.
What DTI do I need for a mortgage?＋
Conventional: 28/36. FHA: 31/43 (up to 50% with compensating factors). VA: 41% guideline but flexible. Use our pre-qualification tool to check.