Debt-to-Income Ratio Calculator
Two ratios lenders watch
The front-end ratio compares only your housing cost to income; the traditional guideline is 28% or less. The back-end ratio adds every other required debt payment and is the one most lenders cap — 36% is the classic threshold, with automated approvals often reaching into the 40s. Knowing both numbers tells you whether a payment problem is the house itself or everything stacked on top of it.
Frequently Asked Questions
Which debts are counted in the back-end ratio?
Required payments: minimum credit card payments, auto and student loans, personal loans, child support, and the housing payment itself. Expenses like groceries, utilities, and insurance on a paid-off car are excluded.
How can I improve my DTI quickly?
Pay off or refinance a small loan to erase its whole payment, request lower minimums, or add verifiable income. Paying a card down usually helps less than paying it off entirely, since minimums drop only slightly with the balance.