Debt-to-Income Ratio Calculator
Calculate your DTI ratio and see if you qualify for a mortgage.
This tool is for informational and educational purposes only. It is not a substitute for professional financial, medical, legal, or engineering advice. See Terms of Service.
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Your debt-to-income ratio is one of the most important numbers in mortgage qualification. Here is how to calculate yours:
- Enter your gross monthly income. This is your income before taxes and deductions. Include salary, bonuses, rental income, and other regular sources. If your income varies, use a 12-month average.
- Enter your housing payment. Use your current rent or proposed mortgage payment (including taxes and insurance if known).
- Add your other debts. Include car payments, student loans, credit card minimums, personal loans, and any other recurring debt payments. Do not include utilities, groceries, or subscriptions.
- Review your ratios. The calculator shows both your front-end DTI (housing only) and back-end DTI (all debts), along with a qualification assessment.
About Debt-to-Income Ratios
Lenders use two DTI ratios to evaluate mortgage applications. The front-end ratio divides your housing costs by gross income. The back-end ratio divides all monthly debts by gross income. Most conventional loans require a back-end DTI of 43% or less. FHA loans may accept up to 50% with compensating factors.
The traditional "28/36 rule" suggests spending no more than 28% on housing and no more than 36% on total debt. While many lenders accept higher ratios, keeping your DTI low gives you a stronger application and better rate options.
Frequently Asked Questions
What is a good DTI ratio for a mortgage?
Below 36% is considered ideal by most lenders. Between 36% and 43% is acceptable for conventional loans. FHA loans may approve DTI ratios up to 50% with strong compensating factors like high credit scores or significant cash reserves.
What debts are included in DTI?
Include all recurring monthly debt payments: mortgage or rent, car loans, student loans, credit card minimums, personal loans, child support, and alimony. Do not include utilities, insurance premiums, groceries, phone bills, or subscriptions.
How can I lower my DTI ratio?
You can lower DTI by paying off debts (start with the smallest balances for quick wins), increasing income, or choosing a less expensive home. Paying off a car loan or credit card before applying can significantly improve your ratio.
What is the difference between front-end and back-end DTI?
Front-end DTI only includes housing costs (mortgage, taxes, insurance). Back-end DTI includes housing plus all other debt payments. Lenders primarily focus on back-end DTI, but both matter for qualification.