Reviewed August 9, 2026 · Current CFPB General Qualified Mortgage rule reflected
Debt-to-Income (DTI) Ratio Calculator
Calculate your DTI from recurring monthly debt and gross monthly income.
Front-end housing DTI: 25.0%. The total DTI below includes housing, auto, student loans, cards and other debt; avoid counting an obligation twice.
Include recurring obligations such as auto loans, student loans and required minimum debt payments. For mortgage underwriting, the exact debts counted can depend on program rules.
Your DTI Ratio
A higher DTI can reduce borrowing flexibility. The current CFPB General Qualified Mortgage definition does not impose a universal 43% DTI maximum.
Planning Benchmarks — Not Approval Limits
28%, 36% and 43% are commonly encountered planning reference points, but mortgage underwriting varies. The CFPB removed the former fixed 43% DTI cap from the General Qualified Mortgage definition and replaced it with price-based thresholds.
DTI calculation for mortgage planning
Quick answer: Debt-to-income ratio equals recurring monthly debt payments divided by gross monthly income. Front-end DTI looks at housing expense; back-end DTI adds other recurring debts. Program and lender calculations can differ from a consumer estimate.
Use gross monthly income
Convert stable annual gross income to a monthly amount before taxes. Underwriters determine which income is eligible and documented.
Include recurring obligations
Add up your monthly mortgage payment, auto and student loan payments, minimum card payments and other existing debt. Mortgage lenders may also review credit score, assets and program rules.
Avoid a universal approval claim
The former fixed 43% General Qualified Mortgage DTI limit was replaced by price-based thresholds. Loan programs and lenders still apply their own underwriting rules.
Scenarios to calculate
- Compare front-end and back-end DTI.
- Test how paying off a recurring debt changes the ratio.
- Model FHA, VA or conventional planning scenarios without treating the result as approval.
Next: estimate mortgage affordability, compare front-end and back-end DTI, compare government-backed loan costs.
How to Calculate Your Debt-to-Income Ratio
Debt-to-income ratio (DTI) is monthly recurring debt divided by gross monthly income, expressed as a percentage. For example, $2,000 of monthly debt divided by $8,000 of gross monthly income equals a 25% DTI.
DTI is a planning measure, not a universal approval rule
The CFPB's current General Qualified Mortgage definition does not impose a universal 43% DTI cap. The former fixed 43% General QM threshold was replaced with price-based thresholds. Mortgage programs, automated underwriting systems and individual lenders can apply different debt and income rules.
What debts should you include?
For a personal planning estimate, include recurring required debt payments such as installment loans, student loans, required minimum revolving-debt payments and other continuing obligations. Mortgage underwriting can count specific obligations differently, so a lender's calculated DTI may differ from this simplified tool.
How to interpret the result
Lower DTI generally means more income is available after recurring debt payments. Common planning references such as 28%, 36% and 43% can help compare scenarios, but none should be presented as guaranteed approval or rejection thresholds across all mortgage products.
Next step
Use the Home Affordability Calculator to add a proposed housing payment, or the Mortgage Calculator to estimate principal, interest, taxes and insurance.
Source note
The General QM rule description on this page is based on the Consumer Financial Protection Bureau's final rule replacing the former 43% DTI limit with price-based thresholds. Reviewed August 7, 2026.
Debt-to-Income Ratio Calculator FAQs
What is a debt-to-income ratio?
DTI is recurring monthly debt divided by gross monthly income. It is one factor lenders may consider when evaluating mortgage ability to repay.
Does the CFPB General Qualified Mortgage rule cap DTI at 43%?
No. The CFPB replaced the former fixed 43% DTI limit in the General Qualified Mortgage definition with price-based thresholds. Specific mortgage programs, automated underwriting systems and lenders can still apply their own DTI requirements.
What is a good DTI ratio?
There is no single ratio that guarantees approval or financial health. Lower DTI generally provides more room in a budget, while mortgage qualification depends on the loan program, housing payment, credit, assets, income documentation and lender underwriting.
What debt should I include in this calculator?
For a planning estimate, include recurring required debt payments such as auto loans, student loans and minimum revolving-debt payments. Mortgage underwriting rules can count some obligations differently, so a lender-calculated DTI may differ.
How can I lower my DTI?
Reducing recurring debt payments or increasing documented gross income can lower DTI. Before changing debt or credit specifically to qualify for a mortgage, consider discussing the timing with your lender because underwriting and credit effects vary.
Continue your financial research
Use these closely related USFinNexus guides and tools to plan your next step.
Illustrative comparison scenarios
| Annual income | Housing DTI | Total DTI |
|---|---|---|
| $60,000 | 40.0% | 50.0% |
| $75,000 | 32.0% | 40.0% |
| $100,000 | 24.0% | 30.0% |
| $120,000 | 20.0% | 25.0% |
| $150,000 | 16.0% | 20.0% |
Educational scenarios, not quotes, approvals, investment forecasts or tax advice. See methodology and limitations.