Understanding the debt-to-income ratio calculator
Debt-to-income ratio (DTI) measures how much of your gross income already goes to debt. The front-end ratio counts only housing; the back-end ratio adds every other required payment car loans, student loans, and minimum credit-card payments. Lenders lean on the back-end number to decide how much mortgage you can handle.
Conventional loans generally look for a back-end DTI at or below 36%, though many approve up to 43% (and some government-backed loans go higher) for strong borrowers. Lowering DTI by paying down balances or raising income is one of the most effective ways to qualify for a larger loan or a better rate.
Results are estimates for education only and are not financial advice.