Debt Ratio Calculator · Practical guide
Front-End vs Back-End DTI: What's the Difference?
Front-end counts only your housing payment; back-end counts every monthly debt — lenders require both to pass.
At a glance
Quick answer
Front-end DTI is your monthly housing payment divided by gross monthly income; back-end DTI is all monthly debt payments — housing, car, credit cards, student loans, everything — divided by gross income. The standard targets are 28% front-end and 36% back-end.
Interactive tool
Debt Ratio Calculator
Enter your own values, then compare the result with the examples below.
Results
Front-End DTI: Housing Only
Also called the housing ratio, it answers one question: is this house payment proportionate to your paycheck? A $1,200 payment on $5,000 gross income is a 24% front-end ratio — comfortably under the 28% line. For renters, current rent fills this slot; for buyers, the proposed mortgage payment does.
Back-End DTI: The Whole Picture
The back-end ratio stacks every recurring obligation on top of housing. Take $5,000 income with $1,200 housing, a $350 car payment, $200 in card minimums, $250 student loan, and $100 in other debt: total debt is $2,100, so back-end DTI is 42%. That is above the 36% good range and just inside the 43% ceiling.
Side by Side
| Front-end | Back-end | |
|---|---|---|
| Includes | Housing payment only | All monthly debt payments |
| Good target | 28% or less | 36% or less |
| Danger line | Over 31% | Over 43% |
Why Both Matter
A borrower can ace the front-end ratio with a modest house while drowning in car and card debt — or the reverse. Checking both, as the calculator above does, shows which lever to pull: a cheaper home, or fewer other payments.
Frequently Asked Questions
Which DTI matters more to lenders, front or back end?
The back-end ratio carries more weight because it captures total obligations. But a front-end ratio far above 28% can sink an application even when the back-end ratio passes.
Is rent included in the front-end ratio?
Yes — for renters, current rent is the housing cost. When you apply for a mortgage, lenders swap in the proposed new payment instead.
Do credit card balances or minimum payments count?
Only the required minimum monthly payment counts toward DTI, not the full balance. Paying a card off entirely removes its minimum from your ratio.
Can my front-end ratio be higher than my back-end ratio?
No. Back-end includes everything front-end does plus more, so it is always equal to or higher than the front-end ratio for the same month.