Reviewed August 9, 2026 · Current CFPB General Qualified Mortgage rule reflected
Quick answer: Debt-to-income ratio equals recurring monthly debt payments divided by gross monthly income. Front-end DTI looks at housing expense; back-end DTI adds other recurring debts. Program and lender calculations can differ from a consumer estimate.
Convert stable annual gross income to a monthly amount before taxes. Underwriters determine which income is eligible and documented.
Add up your monthly mortgage payment, auto and student loan payments, minimum card payments and other existing debt. Mortgage lenders may also review credit score, assets and program rules.
The former fixed 43% General Qualified Mortgage DTI limit was replaced by price-based thresholds. Loan programs and lenders still apply their own underwriting rules.
Next: estimate mortgage affordability, compare front-end and back-end DTI, compare government-backed loan costs.
Debt-to-income ratio (DTI) is monthly recurring debt divided by gross monthly income, expressed as a percentage. For example, $2,000 of monthly debt divided by $8,000 of gross monthly income equals a 25% DTI.
The CFPB's current General Qualified Mortgage definition does not impose a universal 43% DTI cap. The former fixed 43% General QM threshold was replaced with price-based thresholds. Mortgage programs, automated underwriting systems and individual lenders can apply different debt and income rules.
For a personal planning estimate, include recurring required debt payments such as installment loans, student loans, required minimum revolving-debt payments and other continuing obligations. Mortgage underwriting can count specific obligations differently, so a lender's calculated DTI may differ from this simplified tool.
Lower DTI generally means more income is available after recurring debt payments. Common planning references such as 28%, 36% and 43% can help compare scenarios, but none should be presented as guaranteed approval or rejection thresholds across all mortgage products.
Use the Home Affordability Calculator to add a proposed housing payment, or the Mortgage Calculator to estimate principal, interest, taxes and insurance.
The General QM rule description on this page is based on the Consumer Financial Protection Bureau's final rule replacing the former 43% DTI limit with price-based thresholds. Reviewed August 7, 2026.
DTI is recurring monthly debt divided by gross monthly income. It is one factor lenders may consider when evaluating mortgage ability to repay.
Calculate your DTI from recurring monthly debt and gross monthly income.
Include recurring obligations such as auto loans, student loans and required minimum debt payments. For mortgage underwriting, the exact debts counted can depend on program rules.
Your DTI Ratio
Your current recurring debt is low relative to gross monthly income. Actual mortgage qualification still depends on the loan program, housing payment, credit, assets and lender underwriting.
28%, 36% and 43% are commonly encountered planning reference points, but mortgage underwriting varies. The CFPB removed the former fixed 43% DTI cap from the General Qualified Mortgage definition and replaced it with price-based thresholds.