Finance
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FAQs
What is a good debt-to-income ratio?
In many lending contexts, under 36% back-end DTI is considered strong, while 43% is often an upper limit for conventional qualification.
What is the difference between front-end and back-end DTI?
Front-end DTI compares housing costs to gross income. Back-end DTI includes housing plus all recurring debt obligations.
How to Use the DTI Calculator
- Enter your gross monthly income before taxes.
- Enter your recurring monthly debt payments (cards, loans, etc.).
- Enter your projected monthly housing payment.
- Review front-end and back-end DTI percentages.
DTI Formulas
Front-End DTI
Back-End DTI
Use Cases
Mortgage pre-check
Estimate borrowing readiness before applying.
Budget planning
Keep debt obligations aligned with income changes.