How to use this calculator
- Gross monthly income: what you earn before taxes and deductions, for everyone who will be on the loan. If you’re paid yearly, divide by 12.
- Monthly housing payment: your full mortgage payment including property tax, insurance, mortgage insurance and HOA dues. If you’re applying for a mortgage, use the new payment, not your current rent.
- Other monthly debts: the minimum required payments on car loans, student loans, credit cards and other debts such as personal loans or child support.
The result shows your back-end DTI on a scale, your front-end DTI, how your income splits between housing, other debts and everything else, and a table checking you against each guideline.
The DTI formulas
Worked example
You earn $7,500 a month before tax. Your mortgage payment would be $2,000 with taxes and insurance, and you pay $400 on a car loan, $250 on student loans and $100 in credit card minimums.
- Total monthly debt payments: $2,000 + $400 + $250 + $100 = $2,750
- Front-end DTI: $2,000 ÷ $7,500 = 26.7%
- Back-end DTI: $2,750 ÷ $7,500 = 36.7%
That’s within the FHA standard (31/43), the VA benchmark (41%) and Fannie Mae’s automated limit (50%), but just above the 36% in the 28/36 rule and Fannie Mae’s basic manual-underwriting limit. If you paid off the car loan, your back-end DTI would drop to 31.3% and you’d meet all five guidelines.
Mortgage DTI limits by loan type
| Guideline | Housing (front-end) | Total (back-end) | Details |
|---|---|---|---|
| 28/36 rule | 28% | 36% | A budgeting guideline, not a lending rule |
| Conventional (Fannie Mae), manual | — | 36% | Up to 45% with required credit score and reserves |
| Conventional (Fannie Mae), Desktop Underwriter | — | 50% | Maximum for automated approvals |
| FHA, manual underwriting | 31% | 43% | 37/47 with one compensating factor, 40/50 with two, for credit scores of 580+; scores below 580 stay at 31/43 |
| VA | — | 41% | A standard, not a cap; residual income is weighed too |
Since October 1, 2022, the federal “general qualified mortgage” definition no longer uses a fixed 43% DTI limit. It relies on how a loan is priced instead, though lenders must still consider your DTI or residual income. You’ll still see 43% quoted often because it was the old cap and remains FHA’s standard manual-underwriting limit.
How to read your scale
The colored scale uses the thresholds in the table above:
- Up to 36%, comfortable. Within every guideline, and in line with the 28/36 rule.
- 36% to 43%, manageable. Acceptable to most programs, though it leaves less slack for saving and surprises.
- 43% to 50%, high. Usually needs automated approval or compensating factors such as strong credit and cash reserves.
- Over 50%, very high. Above the usual maximums. Expect to pay down debt or increase income before qualifying for a mortgage.
These labels describe where you stand against common guidelines, not your personal financial health. Two people with the same DTI can be in very different positions depending on savings, job stability and other costs.
How to lower your DTI
- Pay off a small balance completely. Removing a whole monthly payment, like a car loan near its end, helps more than paying down a large balance a little. The debt payoff calculator can help you plan which to tackle first.
- Cut credit card balances. Minimum payments fall as balances shrink. See the credit card payoff calculator.
- Avoid new debt before and during a mortgage application.
- Add a co-borrower’s income, if someone else will share the loan.
- Aim for a lower payment. A larger down payment, lower price or lower rate shrinks the housing payment. The home affordability calculator finds the highest price that fits a target ratio.
Assumptions and limitations
Lenders verify income and debts from documents and your credit report, and they have detailed rules for things like variable income, deferred student loans, co-signed debts and installment loans with only a few payments left. Your lender’s calculation may differ from this one. Meeting a guideline doesn’t guarantee approval: credit history, savings and the property also matter.
Sources
- Consumer Financial Protection Bureau: What is a debt-to-income ratio?
- Fannie Mae Selling Guide: B3-6-02, Debt-to-Income Ratios
- U.S. Department of Housing and Urban Development: Mortgagee Letter 2014-02, Manual Underwriting, now part of HUD Handbook 4000.1
- Code of Federal Regulations: 38 CFR 36.4340, VA underwriting standards
- Consumer Financial Protection Bureau: General QM rule, delay of mandatory compliance date to October 1, 2022
This calculator is for general information only. Your lender determines your DTI and whether you qualify.
Frequently asked questions
What is a good debt-to-income ratio?
Many budgeting guides suggest keeping total debt payments at or below 36% of gross income, with housing at or below 28%. That's well inside every major loan program's limits. Lenders may approve higher ratios, up to 50% in some cases, but a lower ratio leaves more room in your budget and can help you qualify for better terms.
What's the difference between front-end and back-end DTI?
Front-end DTI counts only your housing payment (principal, interest, property tax, insurance, mortgage insurance and HOA dues). Back-end DTI adds every other monthly debt payment, such as car loans, student loans and credit card minimums. When people say "DTI" they usually mean the back-end ratio.
What is the maximum DTI for a conventional loan?
Fannie Mae's guidelines set a maximum of 36% for manually underwritten loans, which can go up to 45% if you meet its credit score and reserve requirements. For loans approved through its Desktop Underwriter system, the maximum is 50%. Individual lenders can set stricter limits.
What DTI do I need for an FHA loan?
For manually underwritten FHA loans, HUD's standard limits are 31% for housing and 43% in total. Borrowers with credit scores of 580 or higher can go up to 37/47 with one compensating factor or 40/50 with two, such as verified cash reserves or a minimal increase in housing payment. Loans approved by automated underwriting can be held to different limits.
What DTI do I need for a VA loan?
VA rules treat 41% as the standard, not a hard cap. A higher ratio can still be approved with justification, and if your residual income (the cash left after major monthly expenses) beats VA's guideline by at least 20%, the extra review isn't required. Lenders may apply their own limits.
Which debts count in DTI?
Recurring monthly obligations that show up on your credit report or in court orders, such as mortgage or rent on the new loan, car and student loans, minimum credit card payments, personal loans, child support and alimony. Everyday costs like utilities, groceries, insurance premiums outside your mortgage and phone bills don't count.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.