Debt-to-Income Ratio Calculator
Work out your debt-to-income ratio (DTI) and housing ratio, see whether you pass the 28/36 rule, FHA and Fannie Mae limits, and how much debt you would need to cut to get under each one.
How to use the debt-to-income calculator
Enter your gross income, then the monthly payment on each debt: the minimum payment the statement asks for, not the balance. The calculator shows your total debt-to-income ratio (back-end DTI), your housing ratio (front-end DTI), and whether you pass each common limit. If you pass, it shows how much more monthly debt still fits; if not, how much in payments you would need to clear.
What the result means
| Limit | Housing | All debts | Notes |
|---|---|---|---|
| 28/36 rule of thumb | 28% | 36% | A budgeting guideline, not a lender requirement. |
| Fannie Mae, manually underwritten | – | 36% | Up to 45% with the credit score and cash reserves its matrix requires. |
| FHA standard (manual) | 31% | 43% | Higher with compensating factors: 37/47 with one, 40/50 with two. |
| Fannie Mae manual with strong credit + reserves | – | 45% | Eligibility Matrix credit score and reserves required. |
| Fannie Mae automated (DU) maximum | – | 50% | The most a Fannie Mae loan allows, only with an automated approval. |
Fannie Mae's limits are from its Selling Guide (B3-6-02); FHA's from HUD Handbook 4000.1. Individual lenders can be stricter. There is no federal 43% cap anymore: since 2021 the Qualified Mortgage rule only requires lenders to consider your DTI or residual income.
How much monthly debt fits your income
Highest total monthly debt payments, housing included, at each ratio:
| Gross income | Per month | At 36% | At 43% | At 50% |
|---|---|---|---|---|
| $40,000 | $3,333 | $1,200 | $1,433 | $1,667 |
| $50,000 | $4,167 | $1,500 | $1,792 | $2,083 |
| $60,000 | $5,000 | $1,800 | $2,150 | $2,500 |
| $75,000 | $6,250 | $2,250 | $2,688 | $3,125 |
| $100,000 | $8,333 | $3,000 | $3,583 | $4,167 |
| $125,000 | $10,417 | $3,750 | $4,479 | $5,208 |
| $150,000 | $12,500 | $4,500 | $5,375 | $6,250 |
| $200,000 | $16,667 | $6,000 | $7,167 | $8,333 |
Front-end vs back-end DTI
The front-end ratio counts only housing: the full mortgage payment with property tax, insurance, mortgage insurance and HOA dues. The back-end ratio adds every other debt payment. Lenders mostly judge the back-end number; FHA also checks the front-end one. To see what home price fits your ratios, use the home affordability calculator.
Bringing your ratio down
The fastest drop comes from deleting a payment, not shrinking a balance: a small loan paid off in full removes its whole payment from the ratio. Our guide to the avalanche and snowball methods and the debt payoff calculator help you pick the order. Folding several debts into one loan can lower the monthly total, with trade-offs covered in debt consolidation.
Frequently Asked Questions
What is a good debt-to-income ratio?
Under 36% of gross monthly income for all debt payments, with no more than 28% going to housing, is the common rule of thumb. Below 20% leaves a lot of room. Lenders approve higher ratios on some loans, but the higher your ratio, the less of each paycheck is left for saving and surprises.
How do you calculate debt-to-income ratio?
Add up your monthly debt payments and divide by your gross (before-tax) monthly income. The CFPB's example: a $1,500 mortgage payment, a $100 car loan and $400 of other debts is $2,000 a month; on $6,000 of gross monthly income that is 33%.
What counts as debt in DTI?
Your housing payment (mortgage principal and interest, property tax, homeowners insurance, mortgage insurance and HOA dues), car loans and leases, student loans, credit card minimum payments, personal loans, and alimony or child support you pay. Utilities, phone, car insurance, groceries and other living costs do not count.
What is the maximum DTI for a mortgage?
It depends on the loan. Fannie Mae allows up to 36% on manually underwritten loans, 45% with strong credit and reserves, and 50% with an approval from its automated system. FHA's standard manual limits are 31% for housing and 43% in total, rising to 47% or 50% with compensating factors such as cash reserves.
Is there still a 43% DTI rule?
Not as a federal requirement. The 43% cap in the Qualified Mortgage rule was replaced by a price-based test in 2021; lenders must still consider your DTI or residual income, and FHA keeps 43% as its standard manual limit. Many lenders and loan programs use 43% as a benchmark.
Does rent count in debt-to-income ratio?
For a mortgage application, no: the lender replaces your rent with the payment on the home you are buying. Some landlords and other lenders look at rent as a share of income, and it is worth checking for your own budget, so the calculator lets you enter it.
How can I lower my debt-to-income ratio?
Pay off a small balance to remove its payment entirely, pay down credit cards (the minimum payment falls with the balance), avoid new loans before you apply, or raise your income. Refinancing to a longer term lowers the payment but usually raises the total interest.
