what is a good dti ratio
What Is a Good DTI Ratio and How to Calculate It?
Your DTI ratio affects approval odds, rate quality, and borrowing limits. This article explains practical DTI targets.
Calculator in This Article
How to calculate using Debt-to-Income Ratio Calculator
- Enter gross monthly income, housing payment, and all recurring debt obligations.
- Compute both front-end and back-end DTI to mirror lender screening.
- Use DTI output with affordability and budgeting decisions before new debt.
Debt-to-Income Ratio Calculator formula
- Front-end DTI = housing payment / gross income x 100.
- Back-end DTI = (housing + other debts) / gross income x 100.
- Lower DTI generally indicates stronger repayment capacity.
Worked example
- Income = $6,000; housing = $1,800; other debts = $500.
- Front DTI = 30.00%.
- Back DTI = 38.33%.
Accuracy and interpretation notes
- Use gross income, not net pay, for standard DTI practice.
- Include minimum credit card due amounts and installment obligations.
SEO keywords covered in this guide
- what is a good dti ratio
- dti calculator
- debt to income ratio
- back end dti