Debt-to-Income Ratio Calculator 2026
Calculate your DTI ratio, find out if you qualify for a mortgage, and see the maximum housing payment lenders will approve for your income.
Quick Answer
On a $6,000/month gross income with $800 in existing debt payments, the conventional mortgage limit (36% back-end DTI) allows a maximum housing payment of $1,360/month. FHA (43% limit) allows up to $1,780/month. A DTI below 36% unlocks the best conventional rates and approval odds.
Your Income & Monthly Debts
Mortgage Affordability
Your Debt-to-Income Ratio
Your DTI Ratio
13.3%
Monthly Debt
$800
Rating
Excellent
DTI Scale
Mortgage Qualification Limits
What Lenders Look For
Your DTI is 13.3% — excellent. Conventional lenders want DTI ≤36%; FHA loans allow up to 43%. Back-end DTI with your proposed housing is 43.3%.
DTI thresholds based on Fannie Mae and FHA guidelines 2026. Actual qualification depends on credit score, down payment, and lender criteria.
DTI Ratio Ratings — What Do They Mean?
| DTI Range | Rating | What It Means |
|---|---|---|
| Under 20% | Excellent | Ideal financial health. Easy approval for any loan type at best rates. |
| 20%–35% | Good | Comfortable range. Qualifies for conventional mortgages. |
| 36%–43% | Fair | Borderline conventional. FHA loans accessible. May need compensating factors. |
| 44%–50% | High | Difficult to qualify. May need larger down payment or co-signer. |
| Over 50% | Very High | Most lenders will decline. Focus on debt reduction before applying. |
Frequently Asked Questions
What is debt-to-income ratio (DTI)?
Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments. It's calculated as: total monthly debt payments ÷ gross monthly income. DTI is the primary metric lenders use to assess your ability to manage monthly payments. There are two types: front-end DTI (housing costs only) and back-end DTI (all monthly debt payments including housing).
What DTI ratio do I need for a mortgage?
Conventional mortgages (Fannie Mae/Freddie Mac) prefer: front-end DTI ≤28%, back-end DTI ≤36%. With strong compensating factors (high credit score, large down payment), back-end DTI up to 45% may be approved. FHA loans allow: front-end DTI up to 31%, back-end DTI up to 43%. VA loans and USDA loans focus primarily on back-end DTI (≤41%). Getting below 36% back-end DTI gives you the most options and best rates.
What counts as debt for DTI calculation?
Lenders include all recurring monthly debt obligations: mortgage/rent payments, car loan payments, student loan payments, credit card minimum payments (not the full balance), personal loan payments, alimony and child support, and other installment loans. What's NOT included: utilities, insurance, groceries, subscriptions, cell phone bills, or other non-debt expenses. Lenders pull your credit report to verify all debt payments.
How can I lower my debt-to-income ratio?
Two approaches: increase income or reduce debt. Fastest debt reduction: pay off smallest balances first (eliminates monthly obligations) or target high-minimum payment debts. If your credit card has a $200 minimum payment, paying it off eliminates $200/month from your DTI calculations even if the balance is small. Alternatively, a raise, second job, or including verified rental/side income can boost gross income. Avoid taking on new debt in the months before a mortgage application.
Does DTI affect my interest rate?
DTI primarily affects mortgage approval/denial rather than the interest rate directly. Your credit score, down payment size, and loan-to-value ratio have a bigger impact on the rate you're offered. However, having a DTI above the conventional limit (36%) may push you into FHA or other programs with higher mortgage insurance costs, effectively raising your total housing expense. The lowest rates go to borrowers with 760+ credit scores, 20%+ down payments, and DTI below 36%.
What is the 28/36 rule?
The 28/36 rule is a classic mortgage guideline: (1) your housing costs should not exceed 28% of gross monthly income (front-end DTI), and (2) your total debt payments should not exceed 36% of gross monthly income (back-end DTI). On a $6,000/month gross income: max housing payment is $1,680/month (28%), and total debt including housing is $2,160/month (36%). If you have $500 in existing debt, your max housing payment under the 36% rule is $1,660.
What DTI do I need to qualify for a mortgage?
Most conventional loan lenders require a back-end DTI of 43% or below. Fannie Mae and Freddie Mac allow up to 45–50% with compensating factors (high credit score, large down payment). FHA loans permit up to 57% DTI in some cases. The lower your DTI, the more likely you are to qualify and receive favorable rates. Under 36% is considered strong; under 28% front-end is ideal for the best rates.
How fast can I lower my debt-to-income ratio?
You can lower DTI two ways: increase income or decrease debt payments. Paying off a $300/month car payment immediately reduces DTI by roughly 3–5% on a $75,000 income — potentially moving you from 45% to 40–42% DTI. Increasing income by $500/month through a raise or side income produces a similar improvement. In practice, combining both approaches (paying off high-payment debt while growing income) is the fastest path to improving DTI.