Calculator
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.
Back-end DTI
—
- Front-end (housing only)
- —
- Total monthly debt
- —
- Verdict
- —
Front-end = housing ÷ income. Back-end = all debts ÷ income — the one lenders weigh most.
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.
If your ratio is close to the line, small moves matter — paying off one loan can tip an approval. 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.