What is a good debt-to-income ratio?

A DTI under 36% is considered good for most lenders. Under 28% for housing alone (front-end DTI) is ideal. Most conventional loans allow up to 43% DTI, though some allow up to 50% with strong compensating factors.

How do I calculate my DTI ratio?

Divide your total monthly debt payments by your gross monthly income, then multiply by 100. Formula: DTI = (Monthly Debts / Gross Income) × 100. Example: $2,000 debts ÷ $6,000 income = 33% DTI.

What is the maximum DTI for a conventional mortgage?

Conventional loans typically allow a maximum DTI of 43%, though some lenders allow up to 50% with compensating factors like high credit score, large down payment, or significant reserves. The ideal DTI is 36% or less.

What is front-end vs back-end DTI?

Front-end DTI (housing ratio) only includes housing costs (mortgage, taxes, insurance, HOA) divided by income. Target: 28%. Back-end DTI includes ALL debts (housing plus car, student loans, credit cards, etc.). Target: 36%.

Can I get a mortgage with 50% DTI?

Possibly with an FHA loan (up to 50-57% with compensating factors) or VA loan (up to 60%). Conventional loans may allow up to 50% with excellent credit, large down payment, and significant cash reserves. Shop around with different lenders.

Mortgage Qualification Tool

Debt-to-Income (DTI) Calculator 2026

Calculate your DTI ratio and see if you qualify for a mortgage. Check your front-end and back-end ratios for conventional, FHA, and VA loans.

Instant qualification checkUpdated 2026-01-25

DTI Quick Reference Guide

≤20%

Excellent

21-36%

Good

37-43%

Acceptable

>43%

High Risk

Most lenders prefer DTI ≤36%. Max for conventional: 43-50%. FHA allows up to 57%.

Monthly Income

Gross Monthly Income

Before taxes

Additional Income (Optional)

Rental income, bonuses, etc.

Monthly Debt Payments

Enter minimum monthly payments for each debt type

Rent/Mortgage

Car Payments

Student Loans

Credit Card Minimums

Personal Loans

Other Monthly Debts

Your Debt-to-Income Ratio

39.17%

Fair

Your DTI is acceptable but at the upper limit. You may face stricter loan requirements.

0%20%36%43%50%+

ExcellentGoodFairHigh

Front-End (Housing)

25%

Target: ≤28%

Back-End (All Debt)

39.17%

Target: ≤36%

Mortgage Qualification

Conventional

Max DTI: 43%

Possible

FHA Loan

Max DTI: 50%

Likely

VA Loan

Max DTI: 60%

Likely

Max Affordable Home (Estimate)

$220,952

Based on 28% housing ratio, 7% rate, 20% down

Debt Breakdown

Housing$1,500/mo

64%

Car Payments$400/mo

17%

Student Loans$300/mo

13%

Credit Cards$150/mo

Total Monthly Debt$2,350

Recommendations

📊You're close to the 36% ideal threshold - small debt reductions will help

💰Increasing income also improves DTI - consider side income or raises

To reach 36% DTI: Reduce monthly debt by $190 or increase income to $6,528/month

Learn More

Understanding DTI Ratios

DTI Rating Scale

How lenders view your debt-to-income ratio

≤20%

Excellent

Very low debt relative to income - easy approval, best rates

21-36%

Good

Healthy debt level - qualifies for most loans easily

37-43%

Acceptable

At limit for conventional - may need compensating factors

44-50%

High

May need FHA or special programs - fewer options

>50%

Very High

Difficult to obtain new credit - focus on debt paydown

Front-End DTI (Housing Ratio)

Target

≤ 28%

Includes:

Mortgage payment (principal + interest)
Property taxes
Homeowner's insurance
HOA fees
PMI (if applicable)

Formula: Housing Costs ÷ Gross Monthly Income × 100

Back-End DTI (Total Debt Ratio)

Target

≤ 36%

Includes housing PLUS:

Car payments
Student loans
Credit card minimums
Personal loans
Child support / alimony

Formula: All Debts ÷ Gross Monthly Income × 100

DTI Limits by Loan Type 2026

Loan Type	Front-End Max	Back-End Max	Extended Max*	Notes
Conventional	28-31%	43%	50%	Extended requires excellent credit, reserves
FHA	31-40%	43%	50-57%	More flexible, great for first-time buyers
VA	N/A	41%	60%	Most flexible, veterans only, no PMI
USDA	29%	41%	44%	Rural areas only, income limits apply
Jumbo	28%	36%	43%	Stricter requirements, larger down payment

*Extended limits require compensating factors: excellent credit (720+), large down payment (20%+), significant cash reserves (6+ months).

How to Lower Your DTI Ratio

Pay Down Credit Cards

Eliminating a $200/month minimum payment drops DTI by ~3% on $6K income

Pay Off Car Loan

A $400/month car payment is a significant DTI contributor - consider payoff

Increase Income

A raise, side hustle, or spouse income all help improve your DTI

Avoid New Debt

Don't open new credit cards or take loans before applying for a mortgage

Refinance Student Loans

Lower monthly payments through income-driven repayment plans

Wait & Save

Pay down debt while saving for larger down payment to reduce loan amount

Frequently Asked Questions

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Last updated: 2026-01-25 • DTI limits verified per CFPB and lender guidelines • Used by 35,000+ home buyers monthly

DTI Quick Reference Guide

DTI Thresholds

Front vs Back-End

Loan Type Limits

Understanding DTI Ratios

Pay Down Credit Cards

Pay Off Car Loan

Increase Income

Avoid New Debt

Refinance Student Loans

Wait & Save

Frequently Asked Questions

What is a good debt-to-income ratio for a mortgage?

How do I calculate my DTI ratio?

What debts are included in DTI?

Can I get a mortgage with 50% DTI?

Is gross or net income used for DTI?

How much does DTI affect my mortgage rate?

What's the 28/36 rule for mortgages?

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