DTI Calculator Guide 2025: What Debt-to-Income Ratio Lenders Want
Debt-to-income ratio (DTI) is one of the first metrics lenders check. If you want better approval odds, you need to know your number. This guide explains DTI in plain language.
Calculate Your DTI
Use our DTI calculator to see your front-end and back-end ratios.
What is DTI?
DTI is your monthly debt payments divided by your gross monthly income. Lower is better.
The 28/36 rule
Lenders often look for housing costs under 28% of income and total debt under 36%. Some loan types allow more, but lower ratios increase approval odds.
How to improve DTI
- โข Pay down high-interest debt first.
- โข Avoid new credit inquiries before applying.
- โข Increase income with stable, documented sources.
DTI FAQ
Does DTI include rent?
Yes, your housing payment counts in the front-end ratio.
What DTI is too high?
Above 43% can be challenging for many loan programs.
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Anand Godar
Financial engineer and founder of QuantCurb. Former fintech data scientist building institutional-grade calculators for everyday wealth decisions.
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