Debt-to-Income (DTI) Ratio Calculator 2026
Calculate your DTI ratio for mortgage qualification. Understand front-end and back-end ratios to improve loan approval chances.
Debt-to-Income (DTI) Ratio Calculator 2026
Introduction
Your Debt-to-Income (DTI) Ratio is one of the most important factors lenders use to approve mortgages and loans. A DTI Calculator shows where you stand and what you need to improve.
How to Calculate DTI
Formula
DTI = (Total Monthly Debt Payments / Gross Monthly Income) × 100
Example:
- Gross Income: $6,000/month
- Debts: $1,200 car loan + $300 student loan + $500 credit cards = $2,000
- DTI: ($2,000 / $6,000) × 100 = 33%
What's a Good DTI?
| DTI Range | Status |
|---|---|
| \u003c 20% | Excellent |
| 20-35% | Good |
| 36-42% | Acceptable (harder to qualify) |
| 43%+ | High risk (many lenders won't approve) |
Note: For most mortgages, lenders prefer DTI below 43%.
Front-End vs. Back-End Ratios
Front-End Ratio
Housing expenses only (mortgage, taxes, insurance).
- Target: ≤ 28%
Back-End Ratio
All debt payments (housing + car + student loans + credit cards).
- Target: ≤ 36%
How to Improve Your DTI
- Pay off small debts to reduce monthly obligations.
- Increase income through side hustles or raises.
- Avoid new debt before applying for a mortgage.
- Refinance existing loans to lower payments.
FAQ
Q: Does rent count toward DTI? A: Only if you're applying for a mortgage. Lenders replace rent with the new mortgage payment in their calculation.
Q: Do utilities count? A: No. Only debts reported to credit bureaus (loans, credit cards) count.
Related Tools
- Mortgage Affordability Calculator: /calculator/101-mortgage-affordability-calculator-2026
Conclusion
A low DTI ratio is your ticket to better loan terms. Use this calculator to track your progress and position yourself for approval.
Key Takeaways
- Prioritize high-interest debt to minimize total interest paid over time
- Compare debt payoff strategies like avalanche vs. snowball to find your best approach
- Even small extra payments can significantly reduce your total repayment timeline
How to Use This Calculator
- Enter your financial details in the fields above
- Adjust parameters to match your specific situation
- Review the calculated results and projections
- Compare different scenarios to find the optimal strategy
Tips for Better Results
- Use realistic estimates based on current market conditions
- Update your calculations regularly as your situation changes
- Consider consulting a financial advisor for complex decisions
- Remember that calculator results are estimates, not guarantees