The Debt-to-Income (DTI) Ratio Calculator determines the percentage of your gross monthly income that goes toward paying debts. Lenders use front-end and back-end DTI ratios to assess your borrowing risk and determine mortgage/loan eligibility.
• Provide your pre-tax income sources and choose pay frequencies (Annual, Monthly, Bi-Weekly, Weekly).
• Input your monthly housing obligations and recurring non-housing debt minimums to compute your Front-End (Housing) and Back-End (Total) DTI.
33.00%
24.00%
Ideal debt load. You will easily qualify for most conventional mortgages and consumer loans.
Your Debt-to-Income (DTI) ratio is a crucial financial metric used by mortgage lenders, auto financers, and credit underwriters to measure your capacity to manage monthly payments and repay borrowed money.
Traditional mortgage guidelines suggest spending no more than 28% of gross monthly income on housing expenses (Front-End DTI) and no more than 36% on total recurring debt obligations (Back-End DTI).
Under the Qualified Mortgage standard, Fannie Mae allows back-end DTI up to 43% (or up to 45–50% with compensating factors). FHA loans typically permit back-end ratios up to 43–50%, while VA loans allow flexible underwriting.
You can reduce your DTI by paying off high-interest revolving credit card balances, refinancing auto loans to lower monthly payments, avoiding new debt before mortgage applications, or increasing verifiable pre-tax earnings.
Allocate gross income across savings, housing, and discretionary funds.
Estimate the maximum home price you can purchase based on income.
Calculate monthly mortgage payments with taxes and insurance.
Combine high-interest debts into a single lower monthly installment.