How to Calculate Debt-to-Income Ratio
Front-end and back-end DTI, the two numbers every lender checks first.
How this number is built
Calculating it yourself
Step 1
Use gross income before tax and add only income you can document.
Step 2
Include the full housing payment: principal, interest, tax, insurance and HOA.
Step 3
Add minimum payments on revolving debt, not the full balances.
Step 4
Include court-ordered support payments, which lenders always count.
Step 5
Compare both ratios against the 28/36 guide and the 43% qualified-mortgage cap.
What people ask next
Which ratio matters more?
Back-end, because it captures your entire obligation. Front-end matters most on the housing decision itself.
Does paying off a card help immediately?
Closing out a small balance removes its minimum payment from the ratio, which is often the fastest way to move the number.
Searches this page answers
| Related search | Goes to |
|---|---|
| debt to income ratio | Debt-to-Income Ratio Calculator |
| how to calculate debt-to-income ratio | Debt-to-Income Ratio Calculator |
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