Debt-to-Income Ratio Calculator
Calculate your front-end and back-end DTI ratios to determine mortgage eligibility. Find out if your debt levels meet lender requirements.
Principal, interest, taxes, insurance
DTI Analysis
Front-end DTI (Housing Ratio)
Back-end DTI (Total Debt Ratio)
Total Monthly Debt
Remaining Monthly Income
Max Housing Payment (28% Rule)
Max Total Debt (36% Rule)
Understanding DTI Ratios
What is DTI?
Debt-to-Income (DTI) ratio is a key metric lenders use to evaluate your ability to manage monthly payments and repay borrowed money. It's calculated by dividing your total monthly debt payments by your gross monthly income, expressed as a percentage. Lower DTI ratios indicate better financial health and improve loan approval chances.
Front-end vs Back-end DTI
- Front-end DTI (Housing Ratio): Compares your housing costs (mortgage, taxes, insurance) to your income. Most lenders prefer 28% or less.
- Back-end DTI (Total Debt Ratio): Compares all monthly debt payments (housing, car, credit cards, loans) to your income. Most lenders prefer 36% or less.
DTI Guidelines by Loan Type
- Conventional Loans: Typically require 43% or less (may go up to 50% with compensating factors)
- FHA Loans: Allow up to 43% back-end DTI (sometimes 50% with strong credit)
- VA Loans: No strict limit, but 41% is typical threshold
- USDA Loans: Generally 41% maximum back-end DTI
- Jumbo Loans: Usually require 43% or less with excellent credit
What Debts Are Included?
Included: Mortgage/rent, car loans, credit card minimum payments, student loans, personal loans, child support, alimony.
Not included: Utilities, groceries, insurance (except housing), entertainment, gas, subscription services.
How to Improve Your DTI
- Pay down debt: Focus on paying off credit cards, car loans, and other debts before applying for a mortgage
- Increase income: Ask for a raise, take on a side job, or add a co-borrower to increase household income
- Avoid new debt: Don't take on new loans or credit cards before applying for a mortgage
- Pay off small debts: Eliminate smaller debts completely to remove them from DTI calculation
- Refinance existing debt: Consolidate or refinance to lower monthly payments
- Choose a less expensive home: Lower housing costs mean lower front-end DTI
- Make larger down payment: Reduces loan amount and monthly mortgage payment
Note: This DTI calculator provides estimates based on common lending guidelines (28/36 rule). Actual loan qualification may vary based on loan type, credit score, down payment, reserves, and other compensating factors. Different loan programs have different DTI requirements. Some lenders may approve higher DTI ratios with strong credit, larger down payments, or significant cash reserves. This calculator is for educational purposes and should not be considered financial advice. Consult with a mortgage professional for specific loan requirements and qualification criteria.
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