You enter your gross monthly income and monthly payments for housing, car loans, student loans, credit cards, and other debts. The tool divides your housing payment by income to get the front-end ratio and divides total debt payments by income to get the back-end ratio. It compares these against the conventional 28/36 guideline and the expanded 31/43 threshold used by some government-backed loan programs. The calculation uses gross (pre-tax) income, not take-home pay.
Include any recurring monthly obligation that appears on your credit report: mortgage or rent, car payments, student loans, credit card minimums, personal loans, child support, and alimony. Do not include utilities, groceries, insurance premiums, or subscriptions — lenders generally exclude those.
Lenders use gross (pre-tax) income, so this calculator does the same. Your take-home pay is lower, which means the actual burden on your budget is heavier than the ratio suggests. Keep that in mind when deciding what you can comfortably afford.
Some loan programs — FHA, VA, and USDA — allow back-end ratios up to 43% or even 50% with compensating factors like a large down payment, high credit score, or significant cash reserves. However, a lower DTI generally means better rates and more loan options.
The fastest approaches are paying off a small debt entirely (removing that payment from the ratio) or increasing reported income (e.g., adding a co-borrower). Refinancing existing debts to lower payments also helps, though it may extend the payoff timeline.
The 28/36 rule is a lending guideline: spend no more than 28% of gross income on housing and no more than 36% on total debt. It originated with conventional conforming loans and remains the most widely cited benchmark, though many lenders now use more flexible thresholds.
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.