Start free

Qualifying

Debt-to-income ratio (DTI)

Abbreviation: DTI

Definition

Debt-to-income ratio (DTI) compares monthly debt payments with gross monthly income. The front-end ratio uses only housing costs; the back-end ratio adds car loans, student loans, card minimums and other debts. Many lenders look for a back-end DTI at or below 43%, though programs vary.

Debt-to-income ratio (DTI), explained

CalcFunnel calculators default to a 43% ceiling as a qualified-mortgage guideline; lenders can approve higher ratios with compensating factors.

Income used is gross (before tax), which surprises many borrowers.

Source: CFPB — what is a debt-to-income ratio?

See DTI in a calculator

The Debt-to-Income Calculator shows how this works with real numbers. Work out your front-end and back-end DTI ratios — the numbers lenders check first.

Open the Debt-to-Income Calculator

Related terms

FAQ

DTI: quick questions

Still stuck? Ask the team — we reply within one business day.

Q.01What is DTI (Debt-to-income ratio)?
Debt-to-income ratio (DTI) compares monthly debt payments with gross monthly income. The front-end ratio uses only housing costs; the back-end ratio adds car loans, student loans, card minimums and other debts. Many lenders look for a back-end DTI at or below 43%, though programs vary.
Q.02What is a good DTI for a mortgage?
Lower is better; 36% or less is comfortable and around 43% is a common ceiling, though some programs allow more.
Q.03Is DTI based on gross or net income?
Gross monthly income, before taxes and deductions.

Explain it with their numbers

Calculators turn definitions into a borrower’s real payment — and a lead for you.

Start free Browse calculators
  • Free plan, no card
  • 14-day trial on Pro & Business
  • Cancel any time