Short answer: your debt-to-income ratio is your monthly debt payments divided by your gross monthly income. Lenders watch two versions: housing-only (front-end, guide ≤ 28%) and everything (back-end, comfortable ≤ 36%, common cap 43%). Example: $7,500 gross income with $2,100 housing and $3,000 total debts → front-end 28.0%, back-end 40.0%.
| Front-end ratio (housing only) | — |
| Total monthly debts counted | — |
| Room left before the 43% line (per month) | — |
See the full breakdown
Educational only — not financial advice or a lending decision. Lenders count the payments that appear on your credit report (minimum card payments, installment payments) and use gross income; exact caps vary by program — 43% is a common lender guide (the old General QM limit, replaced by the CFPB in 2022), not a universal law. Child support/alimony, when applicable, also counts as a debt.
How this calculator works
Both ratios use gross (before-tax) income, because that is how lenders compute them. The back-end numerator is the sum of the payments a lender can see: housing (including tax, insurance, and HOA for owners), auto and student payments, credit card minimums, and other installment debts. Groceries, utilities, and subscriptions don’t count — they aren’t debts. The “room before 43%” line converts the ratio back into dollars so you can see exactly how much monthly payment stands between you and the common cap.
Worked example
- Income $7,500, housing $2,100, other debts $900 → front 28.0%, back 40.0% — workable band.
- Income $5,000, housing $1,000, total debts $1,700 → front 20.0%, back 34.0% — comfortable.
- Stretched: income $4,000, housing $1,600, total $2,600 → back 65.0% — most lenders hesitate.
FAQs
Which debts count? Payments on your credit report plus housing. Lenders use the minimum payment for cards, not your balance or what you actually pay. Is 43% a hard legal limit? No. It was the debt-to-income cap for General Qualified Mortgages until the CFPB replaced it with a price-based test (required from October 1, 2022). Many lenders and programs still use it as a guide; some programs go higher with strong credit, reserves, or a larger down payment — and some lenders are stricter. How do I lower my ratio fastest? Kill small payments entirely (lenders count payments, not balances), avoid new installment debt before a mortgage application, and remember a raise counts too — income is the denominator.
Sources: CFPB: what is a debt-to-income ratio?, CFPB General QM final rule (43% limit replaced) Figures last verified Report a wrong number