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Debt-to-income (DTI) calculator
Debt-to-income is the number that most often decides a mortgage approval. This calculator shows both ratios lenders look at — and where you land against the thresholds that matter.
Front-end vs back-end ratio
Lenders look at two DTI figures. The front-end ratio is just your housing payment divided by gross income; the back-end ratio adds every other monthly debt and is the number that usually drives the decision.
The common target is 43% back-end or lower, with conventional pricing best under 36% and FHA stretching to 45–50% with compensating factors.
- Strong: back-end DTI at or under 36% — best conventional pricing.
- Acceptable: up to 43% back-end, the common approval line.
- Tight: 45–50%, the FHA range with compensating factors.
- Counted debts: housing payment plus car, card minimums, and student loans — not utilities or groceries.
Once you know your DTI, see what price it supports in the affordability calculator or estimate a payment in the payment calculator.
Frequently asked questions
What is a good debt-to-income ratio for a mortgage?
Most Michigan lenders want your total debt-to-income ratio at or below 43%, with the best pricing under 36%. FHA loans can stretch toward 45–50% with strong compensating factors, and some programs go higher — but the lower your DTI, the more room you have and the better your rate.
What counts toward my debt-to-income ratio?
Your future housing payment (principal, interest, taxes, insurance, HOA) plus recurring monthly debts: car loans, student loans, minimum credit-card payments, personal loans, and child support or alimony. Utilities, groceries, and other living costs are not counted.
How do I lower my DTI to qualify?
Pay down or pay off a revolving balance or a small loan, avoid taking on new debt before applying, add a co-borrower's income, or target a lower price. Even closing out one car loan can move a borderline application into approval — see what price fits in the affordability calculator.