Your debt-to-income ratio is your monthly debt payments divided by your gross monthly income. The front-end ratio counts only housing; the back-end ratio counts housing plus every other monthly debt payment.
A common starting guideline is 28% for housing and 36% for all debts. Different lenders and loan programs set their own limits, and some allow higher ratios with strong credit or savings, so treat these as planning targets rather than approval rules. See how much house you can afford for the full picture.
Common questions
What counts as debt in DTI?
Minimum required payments on loans and credit cards, housing costs, and obligations like child support. Everyday expenses such as groceries, utilities and insurance other than homeowners insurance are not included.
Should I use gross or net income?
Gross income, before taxes and deductions. That is how lenders calculate it.
How can I lower my DTI?
Pay down balances with the highest payments, avoid new debt before applying for a mortgage, or increase your income. Paying off a small loan entirely removes its payment from the calculation.