About the Debt-to-Income Ratio Calculator
Lenders commonly look at two versions: the front-end ratio, which counts only housing costs, and the back-end ratio, which counts housing plus all other monthly debt payments.
Requirements differ by lender and loan program, so this calculator shows your ratios without labelling them as approved or rejected.
How It Works
Add up the monthly payments on your debts — mortgage or rent, car loans, student loans, credit card minimums, personal loans, and other obligations such as child support — and divide by your gross (pre-tax) monthly income.
The front-end ratio uses only the housing payment; the back-end ratio uses the total. Everyday expenses like groceries, utilities, and insurance premiums are generally not counted as debt.
Formula
Example
Someone earning $7,500 a month before taxes pays $1,800 for housing, $400 for a car, $250 in student loans, and $150 in credit card minimums.
Inputs
- Gross monthly income
- $7,500
- Housing
- $1,800
- Other debts
- $800
Results
- Total monthly debt
- $2,600.00
- Back-end DTI
- 34.67%
- Front-end DTI
- 24.00%
Assumptions & Limitations
- Gross income is income before taxes and deductions, as most lenders use.
- Credit cards use the minimum payment due, not the full balance.
- Lenders calculate DTI in their own ways (for example, how they count variable income or a proposed new mortgage payment).
Understanding Your Results
- Back-end DTI: All monthly debt payments as a share of gross income.
- Front-end DTI: Housing payment as a share of gross income.
- Income Left After Debt Payments: Gross monthly income minus debt payments (before taxes and living expenses).