Debt-to-Income (DTI) Ratio Calculator
Calculate your exact debt-to-income (DTI) ratio in seconds with our free 2025 calculator. See front-end & back-end ratios, mortgage limits, and how to lower your DTI fast. No sign-up.
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| Salary & Earned Income | |
| Other Income | gift, alimony... |
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| Expenses and Debts | |
| Rental Cost | |
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Table of Contents
Debt to Income (DTI) Ratio Calculator:
Your debt-to-income ratio is one of the most important numbers in personal finance - yet most people have never calculated it.
Lenders look at it before approving a mortgage, auto loan, or even a credit card. Employers sometimes check it for high-security jobs. And if you ever want to know how "house poor" or financially stressed you really are, your DTI tells the truth faster than any budget spreadsheet.
Good news: you can find out your exact DTI in under 60 seconds with the free calculator below. works on mobile and desktop.
What Is Debt-to-Income Ratio and Why Does It Matter?
What is DTI and Why Should You Care? Think of your Debt-to-Income ratio (DTI) as a snapshot of your financial breathing room. It simply measures how much of your gross (pre-tax) monthly income is already spoken for by debt payments.
When you apply for a loan, lenders actually look at two different versions of this number:
The "Housing" Ratio (Front-End): This just looks at your potential home costs—mortgage, rent, taxes, insurance, and HOA fees. Ideally, lenders like to see this at 28% or lower.
The "Total" Ratio (Back-End): This is the big one. It combines your housing costs with all your other monthly bills, like car payments, student loans, credit cards, and child support. The "sweet spot" here is 36% or lower, though many lenders will go up to 43–50% if you have great credit.
How to calculate it: The math is surprisingly simple. You just divide your total monthly debt payments by your gross monthly income.
For example: If you earn $5,000 a month (gross) and your total debt payments equal $1,650, your DTI is 33%. In the eyes of a bank, that's a very manageable number.
Current 2025 Mortgage DTI Guidelines (Major Loan Types)
| Loan Type | Max Front-End | Max Back-End | Notes |
|---|---|---|---|
| Conventional (Fannie/Freddie) | 28% ideal | 36-45% | 45-50% possible with strong credit & reserves |
| FHA | 31% | 43% | Up to 57% with compensating factors |
| VA | No set limit | 41% guideline | Debt ratio >41% needs residual income check |
| USDA | 29% | 41% | Higher allowed with excellent credit |
| Jumbo Loans | Usually ≤35% | ≤43% max | Very strict — often require 700+ credit and 20% down |
| Non-QM / Bank Statement | Varies | Up to 55% | For self-employed or investors |
What Is a Good Debt-to-Income Ratio in 2025?
0-20% - Excellent - you're in complete control
21-35% - Good - comfortable for most lenders
36-42% - Acceptable - many loans still possible
43-49% - Risky - limited options, higher interest rates
50%+ - Dangerous - almost no traditional lender will approve new debt
How to Lower Your DTI Quickly (Real Strategies That Work)
Increase your income
Side hustle, overtime, raise, rental income - every extra dollar lowers the ratio.
Pay off or pay down small debts
Knocking out a $300 car payment drops your DTI more than you think.
Refinance existing loans
Extending a car loan from 48 to 72 months lowers the monthly payment (and DTI) - just know you'll pay more interest long-term.
Add a co-signer or co-borrower
Their income counts, their debts usually don't (for qualifying purposes).
Avoid new debt while applying for a mortgage
Even a $50/month phone contract can push you over the limit.
Frequently Asked Questions
Q: Should I include utilities, groceries, or Netflix in the calculator?
A: No. DTI only counts required debt payments, not discretionary living expenses.
Q: Do 401(k) or IRA contributions count against me?
A: No — lenders use gross income before retirement contributions.
Q: What if I'm self-employed?
A: Use your net business income (after expenses) from Schedule C, or qualifying income from a bank-statement or P&L loan program.
Q: Does my spouse's debt count if we apply together?
A: Yes — all debts in both names are included, but both incomes help lower the ratio.