by Erin Lowry
A practical guide for young adults navigating debt, budgeting, and financial basics.
Debt-to-Income Calculator
Calculate your debt-to-income ratio and see how lenders evaluate your borrowing capacity. Check if you qualify for a mortgage.
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What Lenders Look for in Your DTI
Your debt-to-income ratio is the percentage of your gross monthly income that goes toward debt payments. Lenders use it as a key indicator of your ability to manage new debt. Most conventional mortgages require a DTI under 43%, with 36% or lower considered ideal.
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Front-End vs Back-End DTI
Front-end DTI only counts your housing costs — mortgage, property tax, insurance, HOA. Lenders generally want this under 28%. Back-end DTI includes all recurring debt payments. This is the number most lenders focus on. Understand where you stand with NerdWallet — Learn More →.