What is a good Debt-to-Income (DTI) ratio?

As of October 2026, for a conventional loan sold to Fannie Mae, the limit runs from 36% to 50%, depending on how the loan is underwritten (by a person or by its automated system). The general Qualified Mortgage rule no longer caps DTI at 43%. It uses a pricing test instead, a limit on how far the loan's APR can sit above the average rate. The lender must still consider your DTI or your residual income. For FHA loans underwritten by hand, the limit can reach 50% with compensating factors. A lower DTI leaves more room under every program's limit.

What is the difference between front-end and back-end DTI?

Front-end DTI includes only housing costs (mortgage/rent, taxes, insurance) divided by gross income. Back-end DTI includes all monthly debt obligations (housing + credit cards + student loans + car loans) divided by gross income. Fannie Mae and VA set their limits on the back-end ratio; FHA (31%, underwritten by hand) and USDA (29%) also limit the housing ratio.

How can I improve my DTI ratio?

DTI falls when gross income rises (raises, side income, a co-borrower's income) or when monthly debt payments fall (for example, paying off a credit card, student loan or car loan). The Debt Breakdown chart shows which debts take the largest share of your payments, and re-entering your numbers after a payoff shows the new ratio.

What DTI do I need for FHA and VA loans?

As of October 2026, for FHA loans underwritten by hand, HUD's limits are 31% for housing and 43% for all debts, and the all-debt limit can reach 50% with compensating factors. VA's standard is 41%, and a VA loan above it can still be approved if the lender justifies it. Enter your income and debts to see your DTI, then compare it with these limits.

Can I still get a loan with a high DTI ratio?

A back-end DTI over 43% can still be approved in some programs. An FHA loan underwritten by hand can go up to 50% with compensating factors, and a VA loan above 41% can be approved if the lender justifies it. A lower DTI leaves more room under a program's limit.

Debt-to-Income Ratio Calculator - DTI for Loans

Income & Debts

Calculate your front-end and back-end DTI ratio, see which Good, Moderate or High Risk band each falls in, and see how FHA and VA loans treat DTI.

Enter monthly income

Enter housing costs

Enter your other debts

View your front-end and back-end DTI

Lenders do not all count debts the same way. Some leave out a loan with ten or fewer payments left. Most count a loan you co-signed unless you can show someone else has paid it for a year. Confirm which debts and limits your lender uses before assuming you qualify.

Formulas and sources

Each formula this calculator uses, where it comes from, and what it leaves out. "How it works" shows the same formula with your own numbers.

Back-end DTI

Both and Back-End Only modes

DTI = (Total Debts ÷ Gross Income) × 100

DTI: back-end debt-to-income ratio, in percent
Total Debts: every monthly debt payment you enter, housing included
Gross Income: monthly income before tax

Shown to one decimal. VA rounds the ratio to a whole percent, so 35.6% counts as 36% [4].

Source: Uses the ratio in Regulation Z, 12 CFR 1026.43(c)(7)(ii)(A) [1]. The CFPB defines DTI the same way, with a worked example [2].

Front-end (housing) ratio

Both and Front-End Only modes

Front-end DTI = (Housing costs ÷ Gross Income) × 100

Front-end DTI: housing costs as a percent of income
Housing costs: the mortgage and rent payments you enter
Gross Income: monthly income before tax

FHA and USDA count the full housing payment: principal, interest, property tax, home and mortgage insurance (for USDA, its annual fee) and HOA dues.

Source: Based on the housing ratios of FHA, 31% for a loan underwritten by hand [5], and USDA, 29% [6], which define the payment and the income in their own ways. Fannie Mae [3] and VA [4] set no separate limit on it.

Good, Moderate and High Risk bands

Both, Front-End Only and Back-End Only modes

Front-end Good: below 28%
Front-end Moderate: 28% to 36%
Front-end High Risk: above 36%
Back-end Good: 36% or less
Back-end Moderate: above 36% to 43%
Back-end High Risk: above 43%

The band is read from the ratio as shown, to one decimal: 28.0% is Moderate in front, and 36.0% is Moderate in front and Good behind.

Source: CalcTrail's own bands; no publisher. No primary source was found for the front-end 28% and 36% edges. As of October 2026, the 36% back-end edge matches Fannie Mae's limit for a loan underwritten by hand [3], and 43% matches FHA's for a loan underwritten by hand without compensating factors [5]. VA's standard is 41% [4].

Sources

Consumer Financial Protection Bureau. 12 CFR 1026.43 (Regulation Z): Minimum standards for transactions secured by a dwelling, paragraph (c)(7)(ii)(A). eCFR, current as of October 1, 2026.
Consumer Financial Protection Bureau. What is a debt-to-income ratio? Last reviewed August 28, 2023.
Fannie Mae. Selling Guide, B3-6-02: Debt-to-Income Ratios. Page dated April 2, 2025.
U.S. Department of Veterans Affairs. 38 CFR 36.4340: Underwriting standards, processing procedures, lender responsibility, and lender certification, paragraphs (c) and (d). eCFR, current as of October 1, 2026.
U.S. Department of Housing and Urban Development. FHA Single Family Housing Policy Handbook 4000.1, II.A.5.d.vii and viii. Update 18, issued August 12, 2026.
U.S. Department of Agriculture, Rural Housing Service. 7 CFR 3555.151: Eligibility requirements, paragraph (h)(1)(i). eCFR, current as of October 1, 2026.

What this calculator does not cover

It divides the payments you enter by the income you enter. It does not apply a lender's rules for which debts count, such as leases, loans with few payments left, co-signed loans and student loans.
It does not judge which income a lender counts, and it does not run the other tests lenders use, such as VA's residual income test (the money left each month after major bills).
It does not reproduce automated underwriting, which weighs the whole loan file, not the ratio alone.

Sources checked on October 4, 2026.

Help

Enter monthly income: Your gross income before taxes and deductions.
Enter housing costs: Your monthly mortgage or rent payment.
Enter your other debts: Car loans, credit cards, student loans, and other recurring debts.
View your front-end and back-end DTI: See both ratios instantly, or toggle to view just one.
See your band: See which of this calculator's bands (Good, Moderate, High Risk) each ratio falls in. They are not a lender's limits.
See what moves your DTI: How each debt you entered affects the ratio.
Export or copy your results: Save your DTI report for a lender or financial review.

Understanding DTI

Front-end vs. back-end DTI

Front-end DTI looks at housing costs alone: the mortgage or rent payment, with property tax, insurance and HOA dues. Back-end DTI counts every monthly debt payment: housing plus car loans, credit cards, student loans and other recurring debts. Fannie Mae and VA set their limits on the back-end ratio.

Why lenders set different thresholds

For a conventional loan sold to Fannie Mae, the limit is 36% when the loan is underwritten by hand, or up to 45% with the credit score and reserves Fannie Mae requires. Loans run through its automated system can go up to 50%. VA's standard is 41%: above it, the lender must justify the loan, unless your residual income (what is left each month after major bills) is at least 20% above VA's guideline. For FHA loans underwritten by hand, HUD's limits are 31% for housing and 43% for all debts. With two of HUD's compensating factors (strengths HUD lists, such as cash reserves) and a credit score of 580 or more, the all-debt limit is 50%.

How lenders count deferred and income-driven student loans

A $0 student loan payment is not always counted as $0. For Fannie Mae loans, a $0 payment under an income-driven plan can count as $0 if the lender documents it. A deferred loan counts as 1% of the balance or a payment that would repay the loan over its term. Freddie Mac uses 0.5% of the balance when the credit report shows $0, unless the lender documents a payment above zero. FHA uses the reported payment when it is above zero and 0.5% of the balance when it is zero. VA uses 5% of the balance divided by 12, or a higher reported payment, and counts nothing for a loan deferred at least 12 months past closing. A lower VA payment counts only with the servicer's statement. Enter the payment your lender will use.

How DTI relates to the general Ratio Calculator

DTI is a ratio that lenders judge by their own rules: which debts and income count, and what limits apply. Use this calculator for mortgage or loan qualification questions. For ratios of other quantities, use the Ratio Calculator; for a width:height ratio (image, video, print, or screen), use the Aspect Ratio Calculator.

Frequently Asked Questions

DTI ratio compares your monthly debt payments to your gross monthly income. Front-end DTI divides housing costs alone (mortgage or rent) by your income; back-end DTI divides every monthly debt payment by the same income figure. To calculate DTI, add your monthly debt payments and divide the total by your gross monthly income, such as salary: $1,500 of monthly debts on a $5,000 monthly salary is 30%. Lenders use the result to judge loan eligibility, and also call it your debt ratio, with the front-end figure the housing ratio and the back-end figure the total debt ratio.

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Last updated October 12, 2026