Debt-to-Income Ratio Calculator
Calculate your debt-to-income ratio (DTI) for mortgage qualification.
See if you meet lender requirements and how much your DTI affects loan approval.
Debt-to-Income Ratio (DTI) is the percentage of your gross monthly income that goes toward debt payments. Lenders use DTI as one of the most important factors when approving mortgages and other loans.
The formula:
DTI (%) = Total Monthly Debt Payments ÷ Gross Monthly Income × 100
Two types of DTI lenders use:
Front-end DTI (Housing ratio): Only housing costs ÷ income
Monthly housing costs ÷ Gross monthly income
Back-end DTI (Total debt ratio): All debts ÷ income
(Housing + all other debts) ÷ Gross monthly income
DTI thresholds by loan type:
| Loan Type | Max Front-End | Max Back-End | Notes |
|---|---|---|---|
| Conventional loan | 28% | 36–45% | Stricter for lower down payments |
| FHA loan | 31% | 43–57% | More lenient, mortgage insurance required |
| VA loan | No hard limit | 41% preferred | For veterans; some flexibility above 41% |
| USDA loan | 29% | 41% | Rural areas only |
| Jumbo loan | 28% | 43% | Very strict — large loan amounts |
What counts as monthly debt:
- Mortgage or rent payment (proposed)
- Car loans
- Minimum credit card payments
- Student loans
- Personal loans
- Child support / alimony
- Other installment loan payments
What does NOT count:
- Utilities (electricity, gas, water)
- Insurance premiums (health, auto, life)
- Groceries, subscriptions, entertainment
- Taxes withheld from paycheck
- 401k contributions
Improving your DTI:
- Pay off small debts entirely — even small monthly payments raise DTI
- Increase income (part-time work, raise, side income)
- Avoid taking on new debt before applying for a mortgage
- Larger down payment reduces the mortgage amount and front-end DTI
- Ask employer about a raise letter or bonus documentation
Example: Gross monthly income: $6,000 Car payment: $350 | Student loan: $200 | Credit card minimums: $150 | Proposed mortgage: $1,400 Total debts: $2,100
Back-end DTI = $2,100 ÷ $6,000 = 35% → Qualifies for conventional loan