What is a good debt-to-income ratio for a mortgage?

Most lenders prefer a back-end DTI of 43% or lower, and many buyers get approved at 36% or below with the widest range of options. Some programs allow higher ratios when the borrower has strong credit or savings.

Do student loans in deferment count toward DTI?

Usually yes. Even if your payment is $0 right now, most loan programs require the lender to count a percentage of the outstanding balance (often 0.5% to 1% per month) as a payment.

How can I lower my DTI quickly?

Paying off a small loan or credit card entirely removes that monthly payment from the calculation, which usually moves the number more than paying down a large balance partially. Increasing documented income, such as adding a co-borrower, also helps.

Does DTI use gross or net income?

Gross income, meaning your pay before taxes and deductions. Lenders use gross because it's consistent across borrowers and easy to verify from pay stubs and tax returns.

Does rent count as debt in the DTI calculation?

No. Your current rent is replaced by the proposed mortgage payment when a lender calculates your DTI, because you won't be paying both.

Is a high DTI an automatic denial?

No. DTI is one factor alongside credit, down payment, reserves, and the loan program. A DTI above 43% narrows your options but doesn't close them.

DEBT-TO-INCOME CALCULATOR

How much of your income is already spoken for?

Your debt-to-income ratio (DTI) is the first thing a lender checks and the one most buyers have never calculated. It's simple: your monthly debt payments divided by your monthly income before taxes. Enter both below and you'll have your number in about 30 seconds. No sign-up, no credit check.

Debt-to-Income Calculator | Yellow

Monthly income

Gross monthly income

Before taxes — combine both incomes if you're buying with someone else.

Monthly debts

Car payment(s)

Student loans

Credit cards (min. pmts)

Other loans

Housing payment

Proposed monthly payment

Include principal, interest, taxes, insurance, and HOA dues if any. Not sure yet? Try the affordability calculator first.

Your ratios

Front-end ratio — housing only 0%

0%28% typical ceiling60%

Back-end ratio — all debt 0%

0%36–43% typical range60%

Enter your numbers to see where you stand

This updates live as you type — nothing is saved or sent anywhere.

Get a real answer, not a rule of thumb

Pre-approval looks at your actual credit and finances — takes about 5 minutes to start.

These ranges are general guidelines — actual limits vary by lender and loan program (conventional, FHA, VA, USDA), and many lenders will go beyond 43% back-end with strong compensating factors like a larger down payment or higher credit score. This tool gives you a starting point, not a lending decision. For your first-time buyer basics, see the homebuyer roadmap.

How to read your DTI

Lenders look at two versions of this number.

Lenders look at two versions of this number.

‍Front-end DTI is your housing cost alone (your future mortgage payment, including taxes and insurance) as a share of your gross monthly income.
‍
‍Back-end DTI is your housing cost plus every other monthly debt payment: car loans, student loans, credit card minimums, personal loans, child support. This is the number that matters most for approval.

A rough guide to how lenders read back-end DTI:

Under 36%: Comfortable. You'll have options across most loan types.
36% to 43%: Common and workable. Most conventional and FHA loans live in this range.
43% to 50%: Possible with strong credit, savings, or a government-backed program, but your choices narrow.
Over 50%: Usually a signal to pay down a balance or two before applying.

These ranges shift by loan program and lender, and compensating factors (a bigger down payment, cash reserves, a high credit score) can move the line. Treat them as a map, not a verdict.

A quick example

Say you earn $6,500 a month before taxes. Your car payment is $450, your student loans are $300, and your credit card minimums add up to $120. That's $870 in monthly debt, or a 13% DTI before housing.

If the home you want would cost $1,900 a month all-in, your back-end DTI becomes ($870 + $1,900) / $6,500, or about 43%. That's right at the edge of the most common approval range, which tells you something useful: paying off the credit cards before you apply would drop you to 41% and open up more loan options.

What counts as debt (and what doesn't)

Include: minimum payments on credit cards, auto loans, student loans (even if deferred, many lenders count a percentage of the balance), personal loans, alimony or child support, and any co-signed loans.
Leave out: utilities, phone bills, groceries, insurance premiums, subscriptions, and rent (rent is replaced by your future mortgage payment in the calculation).

What to do with your number

If your DTI is comfortable, the next question is price. Try the Home Affordability Calculator to turn your income into a realistic budget.
If it's tight, see how much room a bigger down payment buys you with the Down Payment Calculator.
Ready to see what a lender would actually say? The Pre-Approval Estimator puts credit and DTI together.

How much of your income is already spoken for?

How to read your DTI

Frequently asked questions

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