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

Most lenders want your front-end DTI (housing costs only) under 28% and your back-end DTI (all debts) under 36%. FHA loans allow up to 43% back-end DTI, and some lenders will go to 50% with strong compensating factors like high credit scores or large reserves.

How do I calculate my debt-to-income ratio?

Divide your total monthly debt payments by your gross (pre-tax) monthly income and multiply by 100. For example, if you earn $7,000/month and have $2,500 in total monthly debts (including housing), your DTI is 35.7%.

What debts are included in DTI calculation?

DTI includes your mortgage payment (principal, interest, taxes, insurance), car loans, student loans, credit card minimum payments, personal loans, and child support or alimony. It does not include utilities, groceries, subscriptions, or insurance premiums other than homeowner insurance.

DTI Calculator

DTI Calculator: Will a Lender Approve Me?

Banks use something called a “debt-to-income ratio” (DTI) to decide if you can handle a mortgage. It’s simple: they add up all your monthly debt payments and divide by your monthly income. If the result is too high, they say no.

What you’ll need: Your monthly income (before taxes), the housing payment you’re targeting, and your other monthly debts (car payment, student loans, credit card minimums).

What you’ll get: Two ratios — your “housing ratio” (just housing costs vs income) and your “total debt ratio” (all debts vs income). Both are color-coded: green means you’d likely be approved, yellow means it’s tight, red means you need to reduce debt first.

The magic numbers: Most banks want housing costs under 28% of your income, and total debts under 36%. Some programs allow up to 43%.

Gross Monthly Income

Pre-tax, all sources

Target Monthly Housing Payment

P&I + tax + insurance + PMI + HOA

All Other Monthly Debts

Car, student loans, credit cards — not housing

ZIP Code (optional — shows local property tax context)

Front-End DTI

28.0%

Housing only · Target: ≤28%

Housing ÷ income · target ≤ 28% (Fannie Mae Selling Guide)

Back-End DTI

35.1%

All debts · Target: ≤36%

All debts ÷ income · target ≤ 36% conventional, ≤ 43% FHA (HUD 4000.1)

ACCEPTABLE

You meet FHA guidelines and many conventional lenders. Some may require compensating factors like high credit or large reserves.

Based on Fannie Mae and HUD conventional/FHA lending guidelines

Your front-end DTI (28.0%) exceeds the 28% guideline. Consider targeting a lower housing payment — reduce by $0/mo to meet the threshold.

How Your Income Breaks Down

Housing Payment$1,960 (28.0%)

Other Debts$500 (7.1%)

Total Debt Obligations$2,460 (35.1%)

Remaining Income$4,540

Debt Payoff Optimizer · free, no account needed

Enter your individual debts to see which payoff moves your DTI the fastest.

What this ranking is: debts are ordered by DTI relief per dollar of balance paid off (monthly payment ÷ balance). That’s about getting approved, not about paying the least interest. If your goal is minimizing interest, the avalanche method — highest interest rate first — is the right order instead.

Payoff Priority (most DTI relief per dollar first)

1st — Car Loan$18,000 · 5.9% APR

Paying off removes $350/mo from your DTI, moving back-end from 35.1% to 30.1% · 60 months at the current payment (at 5.9%)

Save your results

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WHAT TO DO NEXT

Find the right loan

You pass the bank's test — now see which loan types you qualify for.

Run the full rent vs. buy analysis

Passing the bank's test says you can buy — this says whether you should.

DTI guidelines vary by lender and loan program. FHA allows up to 43% (sometimes 50% with compensating factors). This calculator uses standard conventional thresholds as a baseline.