Debt-to-Income Ratio Calculator – DTI for Mortgage Approval

What is the debt-to-income ratio?

Your debt-to-income ratio (DTI) is the share of your gross monthly income that goes to debt payments. Lenders use it to judge whether you can afford a new loan. There are two versions:

Front-end DTI (housing ratio) = housing payment ÷ gross monthly income.
Back-end DTI = all monthly debt payments (housing + car + student loans + card minimums + other loans) ÷ gross monthly income.

Everyday expenses such as groceries, utilities, phone and insurance premiums are not included.

What DTI do lenders want?

Loan type	Typical maximum
Conventional mortgage (Fannie Mae / Freddie Mac)	36% preferred; up to 45%–50% with strong credit and reserves
FHA loan	31% front-end / 43% back-end standard; higher with compensating factors
VA loan	41% guideline, plus residual income test
Qualified Mortgage rule of thumb	43%
Personal loans and auto loans	Often below 36%–40%

Canada: GDS and TDS ratios

Canadian lenders use the Gross Debt Service (GDS) ratio — housing costs including heating and 50% of condo fees — and the Total Debt Service (TDS) ratio, which adds all other debts. For insured mortgages the limits are generally 39% GDS and 44% TDS, calculated at the stress-test qualifying rate. See our Canadian mortgage calculator.

How to lower your DTI

Pay down revolving balances — lowering a credit card balance reduces its minimum payment.
Avoid new car loans or financing before applying for a mortgage.
Add a co-borrower's income, or document side income lenders can count.
Refinance or consolidate high-payment debts into a longer-term loan with a lower payment.

Frequently asked questions

What is a good debt-to-income ratio?

Below 36% is generally considered good, with no more than 28% going to housing. Under 20% is excellent. Above 43% makes many mortgages hard to get.

Is DTI based on gross or net income?

Gross income — your pay before taxes and deductions.

Does rent count in DTI?

When applying for a mortgage, your future housing payment replaces your rent. For other loans, lenders often include current rent.

Do utilities count toward DTI?

No. Utilities, food, insurance and other living expenses are not counted, though Canadian GDS includes heating costs.

Sources & methodology

This calculator was last reviewed on November 1, 2026. Figures are based on the following official and primary sources:

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Debt-to-Income (DTI) Ratio Calculator