Calculate your Debt-to-Income ratio instantly and check if you qualify for a mortgage. Our free 2026 calculator uses CFPB Qualified Mortgage standards.
Calculate DTI<20%
Excellent DTI
28%
Ideal Target
43%
QM Limit
36%
Average American
Your Debt-to-Income (DTI) ratio is one of the most important numbers lenders look at when you apply for a mortgage or loan. It represents the percentage of your gross monthly income that goes toward paying debts.
The Consumer Financial Protection Bureau (CFPB) established the 43% DTI limit for Qualified Mortgages (QM)—loans that meet certain safety standards. According to CFPB data, borrowers with DTIs above 43% are significantly more likely to struggle with payments. The Federal Reserve reports that the average American has a DTI around 36%.
Lenders view DTI as a measure of your financial health and ability to take on additional debt. A lower DTI not only makes loan approval easier but often results in better interest rates, lower fees, and more favorable terms. The 28/36 rule—keeping housing costs under 28% and total DTI under 36%—remains the gold standard for financial health.
<20%
Excellent
Best rates, easy approval
20-36%
Good
Healthy range, good options
36-43%
Acceptable
QM limit, higher scrutiny
>43%
High
Difficult approval, limited options
28/36 Rule: Keep housing costs under 28% of income and total DTI under 36% for optimal financial health.
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