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Debt-to-income ratio calculator (28/36 rule)

Work out your debt-to-income ratio and compare it to the 28/36 rule lenders use — housing costs up to 28% of gross income, total debt up to 36%, with 43% the Qualified-Mortgage ceiling.

By Mitch Duncan Last reviewed Methodology

Your income & debts

Mortgage or rent, plus property tax, building/home insurance, and any HOA / strata / service charge.

Car loans, student loans, credit-card minimums, personal loans. Exclude utilities, groceries, and other living costs.

Sum of all balances incl. mortgage. Used for the income-multiple measure lenders use as a sense-check.

US lenders use the 28/36 rule: housing ≤ 28% and total debt ≤ 36% of gross income. 43% is the usual back-end ceiling for a Qualified Mortgage.

Front-end ratio (housing)
25.0%
Back-end ratio (all debt)
35.0%
Within lender guidelines

Your total-debt ratio of 35% is at or below the 36% lenders look for — a healthy position that should qualify you with most lenders.

Lender guidelines — US
Front-end ratio (housing) — recommended max
28%
Back-end ratio (all debt) — recommended max
36%
Income multiple — typical cap
4.5×

DTI uses gross (pre-tax) income, the same basis lenders apply. It's a guide — actual approval also depends on credit history, deposit, employment, and the lender's own stress test.

Want the full picture? How Much House Can I Afford? The 28/36 Rule Explained →

The 28/36 rule US lenders use

In the US, mortgage lenders judge affordability with the 28/36 rule: your housing costs should be no more than 28% of gross monthly income (the front-end ratio), and your total monthly debt no more than 36% (the back-end ratio). The back-end figure is the one that usually decides approval.

Front-end = housing ÷ gross income · Back-end = all debt ÷ gross income

The 43% Qualified-Mortgage ceiling

Most conventional loans accept a back-end DTI up to 43%, the threshold for a Qualified Mortgage under federal rules. Some programs stretch higher with compensating factors — FHA loans can go to around 50% with strong credit and reserves — but 43% is the practical line for the best terms.

Worked example

Gross income $6,000/month, housing $1,500, other debts $600. Front-end = 25%, back-end = 35% — both inside the 28/36 guideline, so you'd likely qualify comfortably.

What counts toward DTI

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Frequently asked questions

What is a debt-to-income ratio?
Your debt-to-income (DTI) ratio is the share of your gross monthly income that goes toward debt payments. Divide your total monthly debt by your gross monthly income and multiply by 100. Lenders use it to judge whether you can comfortably afford to take on more borrowing — the lower your DTI, the more room you have.
What's the difference between front-end and back-end DTI?
The front-end ratio counts only housing costs — mortgage or rent, property tax, insurance, and any service charge — against your gross income. The back-end ratio counts all your debt: housing plus car loans, student loans, credit-card minimums, and personal loans. The back-end ratio is usually the figure lenders use to make a decision.
What's a good debt-to-income ratio?
Lower is better. As a general guide, a back-end ratio at or below the mid-30s percent is considered healthy, the low-40s is borderline, and above the mid-40s makes borrowing harder. The exact limits depend on your country and lender — the calculator above compares your ratio to the thresholds used in your region.
Does DTI use gross or net income?
Gross income — your pay before tax and deductions. Lenders use gross income because it's the consistent figure shown on payslips and tax returns. Bear in mind your real budget is tighter than your DTI suggests, since tax and other deductions come out before you see the money, so staying well under the limit leaves breathing room.
What debts are included in the calculation?
Include recurring debt: your mortgage or rent, car loans, student loans, credit-card minimum payments, personal loans, and any court-ordered payments like child support. Exclude everyday living costs such as utilities, groceries, insurance (other than on your home), subscriptions, and discretionary spending — those aren't debts.
How can I lower my debt-to-income ratio?
Pay down or clear debts with high monthly payments — removing a car loan or credit-card balance takes its payment out of the ratio entirely. Avoid taking on new debt in the months before applying for a mortgage, and increasing your income raises the bottom of the ratio. Refinancing to a longer term lowers the monthly payment too, though it can cost more interest overall.

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