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Debt-to-Income (DTI) Calculator
What is my debt-to-income ratio?
Estimate your borrowing potential based on lender guidelines.
Estimate Your Mortgage DTI Fast
Calculate your DTI and see how lenders may view your profile.
Use This For
- Checking mortgage eligibility
- Planning debt paydown priorities
- Comparing lender guideline ranges
What You'll Get
- DTI percentage
- Debt breakdown visualization
- Qualification context
Quick Result
Your DTI Ratio
33.8%
Lenders interpret DTI differently by program (FHA, Conventional, VA).
Based on
- • Gross Monthly Income: $6,666.67
- • Total Monthly Debt: $2,250.00
Gross Income (Pre-tax)
Monthly Gross: $6,666.67
Monthly Debts
Your DTI Ratio
33.8%
Note: Lenders interpret DTI differently based on program (FHA, Conventional, VA).
Debt Breakdown
This tool is for illustrative purposes only and does not constitute professional financial, tax, or legal advice. Calculations are estimates and may not reflect real-world variables or local regulations. Always consult with a qualified professional before making financial decisions.
Methodology and Trust
Formulas
Debt-to-Income Ratio
DTI = (Total Monthly Debt ÷ Gross Monthly Income) × 100
Total monthly debt divided by monthly gross income.
Gross Monthly Income
Monthly Income = Annual Income ÷ 12
Used when income is entered yearly.
Recommended Next Steps
Continue your journey with these related tools
Understanding Your DTI Ratio
Your Debt-to-Income (DTI) ratio is a primary metric lenders use to assess borrowing capacity. It measures the percentage of your gross monthly income that is allocated to debt obligations. A lower ratio suggests simpler mortgage approval and potentially better interest rates.
How DTI Is Calculated
The formula is straightforward: DTI = (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100
For example, if you earn $7,000/month before taxes and your monthly debt payments total $2,100, your DTI is 30% ($2,100 ÷ $7,000 = 0.30).
Front-End vs. Back-End DTI
Front-End DTI
Includes only housing-related expenses (principal, interest, taxes, insurance, HOA). Conventional guidelines typically prefer this to be below 28%.
Back-End DTI
Includes housing plus all other recurring debt (credit cards, loans). This is the comprehensive figure most lenders heavily scrutinize, often capped at 36-43% without compensating factors.
Typical Lender Guidelines
| Loan Type | Typical Limit | Context |
|---|---|---|
| Conventional | 36-45% | Strong credit scores may allow for higher ratios. |
| FHA | 43-50% | Government-backed; often more flexible. |
| VA | 41%+ | Considers residual income heavily. |
Factors That Impact DTI
- Debt Reduction: Payoff of recurring monthly obligations directly lowers the ratio.
- New Credit: Avoiding new debt before loan application preserves the ratio.
- Income Verification: Documented increases in income (raises, bonuses) improve the denominator of the equation.
- Co-borrowers: Adding a creditworthy co-borrower adds their income to the calculation, potentially lowering the overall ratio.
The 28/36 Guideline: A traditional conservative target is keeping housing costs under 28% and total debt under 36% of gross income. While many modern loan products permit higher ratios, staying near these targets often provides greater budgetary flexibility.